When OPEC raised the price of oil, it created a:
A) demand-pull inflation.
B) cost-push inflation.
C) demand-push inflation.
D) cost-pull inflation.
E) cost-push deflation.

Question

Quizplus · Accepted Answer

When OPEC raises the price of oil, it increases the cost of production for many businesses that rely on oil. These businesses may then pass on those increased costs to consumers in the form of higher prices for goods and services. This is an example of cost-push inflation, where rising costs lead to higher prices.

When OPEC Raised the Price of Oil, It Created A