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

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to a decrease in aggregate supply. An increase in oil prices is a classic example of this, as it raises the cost of production and transportation across many industries, leading to inflation.

Cost-Push Inflation Can Start with