The combination of a successful wage push by workers and the government's commitment to high employment leads to
A)demand-pull inflation.
B)supply-side inflation.
C)supply-shock inflation.
D)cost-push inflation.

Question

Quizplus · Accepted Answer

A successful wage push by workers and the government's commitment to high employment leads to an increase in labor costs for firms, which then leads to an increase in the price of goods and services to cover these costs. This is an example of cost-push inflation.

The Combination of a Successful Wage Push by Workers and the Government's