Cost-push inflation starts with
A) an increase in aggregate demand.
B) a decrease in aggregate demand.
C) an increase in short-run aggregate supply.
D) a decrease in short-run aggregate supply.

Question

Quizplus · Accepted Answer

Cost-push inflation is initiated by a decrease in short-run aggregate supply, which can occur due to increased costs of production or supply shocks, leading to higher prices for goods and services.

Cost-Push Inflation Starts with