Which of the following would contribute to cost-push inflation?
A)An increase in the costs of inputs of production
B)An increase in the supply of inputs of production
C)An increase in government spending
D)An increase in income taxes

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of inputs of production increase, leading to higher prices for goods and services. An increase in supply of inputs would likely have the opposite effect, reducing costs and decreasing inflation. Increases in government spending or income taxes may affect demand-pull inflation, but not necessarily cost-push inflation.

Which of the Following Would Contribute to Cost-Push Inflation