Cost-push inflation would be the result of a(n)
A) increase in the economy's level of total spending
B) increase in the economy's level of employment
C) decrease in the economy's productivity
D) decrease in the resource prices of the economy

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to a decrease in the supply of goods and services while demand remains constant. A decrease in the economy's productivity can lead to higher production costs, thus causing cost-push inflation.

Cost-Push Inflation Would Be the Result of A(n)