Cost- push inflation might initially result from
A) an increase in government expenditures.
B) the use of new technology.
C) an increase in the cost of resources.
D) an increase in the quantity of money.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when there is an increase in the cost of production inputs such as labor or raw materials. This can be caused by factors such as increased taxes or regulations or a decrease in supply. Options A and D involve increases in demand which would lead to demand-pull inflation, and option B might initially lead to lower costs of production rather than higher costs.

Cost- Push Inflation Might Initially Result from