Cost- push inflation can start with
A)an increase in transfer payments.
B)higher money wage rates.
C)an increase in government expenditure.
D)lower taxes.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the overall price levels in an economy rise due to increases in the cost of wages and raw materials. Higher money wage rates can lead to increased production costs, which businesses may pass on to consumers in the form of higher prices, thus initiating cost-push inflation.

Cost- Push Inflation Can Start with