The initial factors that can create a cost- push inflation do NOT include
A) increases in the money prices of raw materials.
B) increases in the quantity of money.
C) increases in money wage rates.
D) None of the above answers is correct because all of the above could be the initial cause of a cost- push inflation.

Question

Quizplus · Accepted Answer

Increases in the quantity of money are associated with demand-pull inflation, while cost-push inflation is mainly caused by increases in production costs, such as raw materials and wages. Therefore, the initial factors that can create a cost-push inflation do not include increases in the quantity of money.

The Initial Factors That Can Create a Cost- Push Inflation