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

Question

Quizplus · Accepted Answer

Cost-push inflation is initiated by an increase in the costs of production, such as raw materials or wages. An increase in oil prices is a classic example of a trigger for cost-push inflation, as it raises the cost of transportation and production, which can lead to higher prices for a wide range of goods and services.

Cost-Push Inflation Can Start with