Cost-push inflation results from
A)workers' pressure for higher wages.
B)policymakers' attempts to increase aggregate demand for current output above the full-employment level.
C)attempts by financial markets to deal with bracket creep.
D)attempts by the public to receive higher after-tax returns on their savings.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the cost of producing goods and services increases, often due to an increase in wages demanded by workers. When businesses have to pay higher wages, they may pass on those costs to consumers by raising prices, which causes inflation. Therefore, workers' pressure for higher wages is the primary cause of cost-push inflation. The other options do not accurately describe the causes of cost-push inflation.

Cost-Push Inflation Results from