Which type of inflation is triggered by increases in production that which push up the costs of final goods and services?
A) supply-side
B) demand-push
C) cost-push
D) demand-side

Question

Quizplus · Accepted Answer

Cost-push inflation is triggered by an increase in production costs, such as wages or raw materials, which in turn increases the prices of final goods and services. This is different from demand-pull inflation, where demand rises and causes prices to increase. Supply-side inflation refers to an increase in the supply of goods and services, which can lower prices. Demand-side inflation refers to an increase in demand for goods and services, which can raise prices.

Which Type of Inflation Is Triggered by Increases in Production