The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:
A)demand-pull inflation.
B)hyperinflation.
C)cost-push inflation.
D)cyclical inflation.
E)disinflation.

Question

Quizplus · Accepted Answer

The OPEC oil price increases led to an increase in production costs for businesses, which led to an increase in prices for consumers. This type of inflation is known as cost-push inflation.

The Inflation Experienced in the United States During the 1970s