What is the term for inflation that occurs due to a decrease in aggregate supply?
A)hyperinflation
B)cost-push inflation
C)inflationary push
D)demand-pull inflation

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when there is a decrease in aggregate supply, meaning that there is an increase in the costs of production for goods and services. As a result, producers may increase prices to cover their higher costs, leading to inflation. This is also known as supply-side inflation or cost-driven inflation.

What Is the Term for Inflation That Occurs Due to a Decrease