Cost- push inflation can be started by
A)a decrease in the money wage rate.
B)a decrease in government expenditure on goods and services.
C)an increase in the quantity of money.
D)an increase in the money prices of raw materials.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the overall price level rises due to increases in the cost of wages and raw materials. An increase in the money prices of raw materials can lead to higher production costs, which businesses may pass on to consumers in the form of higher prices, thus causing inflation.

Cost- Push Inflation Can Be Started by