-Which of the following would be the most likely cause of cost-push inflation?
A)more aggressive wage bargaining by labour unions
B)a reduction in raw material prices
C)a decline in the number of workers belonging to labour unions
D)more rapid increases in labour productivity
E)an increase in consumption spending

Question

-Which of the following would be the most likely cause of cost-push inflation?
A)more aggressive wage bargaining by labour unions 
B)a reduction in raw material prices 
C)a decline in the number of workers belonging to labour unions 
D)more rapid increases in labour productivity 
E)an increase in consumption spending

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to higher prices for consumers. More aggressive wage bargaining by labour unions can lead to higher wages, which increases production costs for businesses. These businesses often pass these costs onto consumers in the form of higher prices, contributing to inflation.

-Which of the Following Would Be the Most Likely Cause