Cost-push inflation is due to:
A) labour cost decreases.
B) higher spending.
C) raw material cost decreases.
D) an increase in input prices.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by an increase in input prices, such as raw materials, energy, or labor costs. When the cost of producing goods and services increases, producers raise prices to maintain profit margins, leading to inflation. Therefore, option D is the correct answer.

Cost-Push Inflation Is Due To