Cost-push inflation can start with
A) a decrease in investment.
B) an increase in oil prices.
C) a decrease in the quantity of money.
D) an increase in government expenditure.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when there is an increase in production costs, such as wages or raw materials. An increase in oil prices directly increases the cost of production for many businesses, leading to higher prices for consumers. The other choices do not directly affect production costs and would not be expected to lead to cost-push inflation.

Cost-Push Inflation Can Start with