Which of the following can cause cost-push inflation if the economy is currently in equilibrium at full-employment GDP?

Question

Quizplus · Accepted Answer

A flood that destroys much of the country's crops can reduce the supply of goods, which can lead to higher prices for those goods and eventually result in cost-push inflation. An increase in the size of the labour force, an increase in the capital stock, and a decrease in personal income tax rates are unlikely to cause cost-push inflation in the short run.

Which of the Following Can Cause Cost-Push Inflation If the Economy