A rise in the price level because of an increase in the price of oil
A) definitely triggers a cost-push inflation.
B) definitely triggers a demand-pull inflation.
C) might trigger a cost-push inflation.
D) might trigger a demand-pull inflation.

Question

Quizplus · Accepted Answer

An increase in the price of oil can lead to higher production costs, which might trigger cost-push inflation if businesses pass these costs onto consumers in the form of higher prices.

A Rise in the Price Level Because of an Increase