When production costs increase and producers raise output prices,the result is
A)The price effect.
B)Unemployment.
C)Cost-push inflation.
D)Demand-pull inflation.

Question

Quizplus · Accepted Answer

When production costs increase and producers raise output prices, it is known as cost-push inflation. This occurs because the increased cost of production reduces the supply of goods and services, leading to higher prices.

When Production Costs Increase and Producers Raise Output Prices,the Result