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

Question

Quizplus · Accepted Answer

Cost-push inflation is initiated by an increase in the costs of production, such as an increase in the money prices of raw materials. This leads to higher production costs for companies, which are often passed on to consumers in the form of higher prices, thus pushing inflation upwards.

Cost-Push Inflation Can Be Started by