Cost-push inflation is:
A) only due to an increase in the cost of raw materials.
B) due to a reduction in demand.
C) only due to an increase in the cost of borrowing.
D) due to an increase in the cost of any inputs used in production.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by an increase in the costs of production, including not only raw materials but any inputs used in production. This increase in costs leads to a decrease in the supply of goods and services, which leads to an increase in their prices.

Cost-Push Inflation Is