Cost-push inflation is due to:
A) "too much money chasing too few goods".
B) the economy operating at full employment.
C) increases in production costs.
D) all of the above.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by increases in production costs, such as an increase in the price of raw materials or labor. It leads to firms increasing the prices of their products and services to maintain their profit margins. This type of inflation is not caused by too much money chasing too few goods or the economy operating at full employment.

Cost-Push Inflation Is Due To