If one of the reasons for the growing inflation rate is due to increases in production costs of goods and services that occurred as a result of a decline in a suitable labour force, this would be an example of which type of inflation?
A) cost-push
B) supply-side
C) cost-pull
D) demand-push

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when there is an increase in the cost of production inputs such as labor, materials, or energy. In this scenario, the decline in the suitable labor force has caused an increase in production costs, which has led to an increase in prices of goods and services, ultimately causing inflation.

If One of the Reasons for the Growing Inflation Rate