Which of the following might create cost-push inflation
A)A decrease government spending
B)A decrease in oil prices
C)A decrease in government regulation
D)The imposition of a 35 hour work week

Question

Quizplus · Accepted Answer

The imposition of a 35 hour work week can create cost-push inflation, as it reduces the productive capacity of businesses and may cause them to increase prices to maintain profitability. The other choices would not directly lead to cost-push inflation.

Which of the Following Might Create Cost-Push Inflation