Which of the following could lead to a period of cost- push inflation?
A) an increase in aggregate supply in the economy
B) a high growth rate of real wages
C) an increase in aggregate demand in the economy
D) automatic fiscal stabilisers

Question

Quizplus · Accepted Answer

A high growth rate of real wages can increase production costs for businesses, leading to higher prices for goods and services, which is a characteristic of cost-push inflation.

Which of the Following Could Lead to a Period of Cost-