The initial factors that can create a cost-push inflation do NOT include
A) increases in money wage rates.
B) increases in the money prices of raw materials.
C) increases in the quantity of money.
D) None of the above answers is correct because all of the above could be the initial cause of a cost-push inflation.

Question

Quizplus · Accepted Answer

Cost-push inflation is primarily caused by increases in the cost of production, such as higher wages and raw material prices. An increase in the quantity of money is more closely associated with demand-pull inflation, where too much money chases too few goods.

The Initial Factors That Can Create a Cost-Push Inflation Do