Which of the following is not a cause of cost-push inflation?
A) labor cost increases.
B) energy cost increases.
C) raw material cost increases.
D) consumer incomes increase.

Question

Quizplus · Accepted Answer

Consumer incomes increasing is not considered a cause of cost-push inflation. Cost-push inflation occurs when there is an increase in production costs, such as labor, energy, and raw materials, which then leads to an increase in prices for goods and services. Consumer incomes increasing can lead to demand-pull inflation, where the demand for goods and services exceeds the supply, leading to price increases.

Which of the Following Is Not a Cause of Cost-Push