Cost-push inflation can be started by
A)a decrease in the money wage rate.
B)an increase in the quantity of money.
C)a decrease in government expenditure on goods and services.
D)an increase in the money prices of raw materials.
E)an increase in government expenditure on goods and services.

Question

Quizplus · Accepted Answer

Cost-push inflation refers to the situation where the inflation is caused by a rise in the cost of production. This can be caused by an increase in the price of raw materials, which would lead to an increase in the cost of production for businesses. As a result, businesses would increase their prices in order to maintain their profit margins, which would lead to inflation.

Cost-Push Inflation Can Be Started by