Cost-push inflation might initially result from
A) an increase in the quantity of money.
B) the use of new technology.
C) an increase in government expenditure.
D) an increase in the cost of resources.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to a decrease in the aggregate supply of goods and services at existing prices. An increase in the cost of resources, such as raw materials or labor, directly contributes to this type of inflation.

Cost-Push Inflation Might Initially Result from