In April 2008 the price of oil was approximately $130 per barrel; in April 2017, it was approximately $50 per barrel. This change in the price of oil could have started

Question

Quizplus · Accepted Answer

The decrease in the price of oil from $130 to $50 per barrel would likely lead to lower production costs for many goods and services, potentially reducing inflation rather than starting it. Cost-push inflation occurs when production costs increase, leading to higher prices, and demand-pull inflation occurs when demand outstrips supply, also leading to higher prices. A decrease in oil prices does not directly start either type of inflation.

In April 2008 the Price of Oil Was Approximately $130