The main sources of cost-push inflation are increases in
A) aggregate demand and real wage rates.
B) real wage rates and the cost of raw materials.
C) money wage rates and aggregate demand.
D) money wage rates and the cost of raw materials.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by an increase in the cost of production, which can come from an increase in money wage rates or the cost of raw materials. Increases in aggregate demand and real wage rates would cause demand-pull inflation.

The Main Sources of Cost-Push Inflation Are Increases in