Cost- push inflation can result from an initial
A)increase in the money wage rate.
B)increase in transfer payments.
C)decrease in personal income taxes.
D)increase in government expenditure.
E)increase in personal income taxes.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the cost of production increases, leading to an increase in the prices of goods and services. An initial increase in the money wage rate can cause this to happen, as it raises the cost of labor and production for businesses.

Cost- Push Inflation Can Result from an Initial