Which of the following is most likely to result if the Congress passes the living wage law?
A) Cost-push inflation
B) Demand-pull inflation
C) Deflation
D) Recession
E) Stagnation

Question

Quizplus · Accepted Answer

If the living wage law is passed, it would increase the wages of workers, leading to higher labor costs for businesses. To offset these increased costs, businesses may raise prices on their goods/services. This cost-push inflation would likely result in an overall increase in prices for consumers.

Which of the Following Is Most Likely to Result If