The initial factors that can create a cost-push inflation do NOT include A) increases in money wage rates. B) increases in the quantity of money. C) increases in the money prices of raw materials. 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 would create a demand-pull inflation rather than a cost-push inflation. Cost-push inflation is caused by an increase in the costs of production, such as an increase in money wage rates or raw material prices, leading to higher prices for goods and services.

The Initial Factors That Can Create a Cost-Push Inflation Do