Cost-push inflation can start with
A)a decrease in investment.
B)an increase in oil prices.
C)an increase in government expenditure.
D)a decrease in government expenditure.
E)a decrease in the quantity of money.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when prices rise due to an increase in the cost of production, such as an increase in the price of raw materials. Therefore, an increase in oil prices, which is a key input for many industries, can lead to cost-push inflation. None of the other options would directly lead to cost-push inflation.

Cost-Push Inflation Can Start with