Which of the following might create cost-push inflation
A)A decrease government spending
B)An increase in oil prices
C)A decrease in government regulation
D)An increase in taxes

Question

Quizplus · Accepted Answer

An increase in oil prices would lead to an increase in the cost of production for firms, resulting in higher prices for goods and services. This is an example of cost-push inflation. The other options do not necessarily involve increased costs for firms and would be unlikely to cause cost-push inflation.

Which of the Following Might Create Cost-Push Inflation