Cost-push inflation occurs when

a. consumers begin purchasing more goods.

b. producers need more money to make and distribute goods.

c. the government prints more money and pushes prices up.

d. consumers have more money to spend on goods and services.

Question

Tristian

Business

30 July, 17:14

Cost-push inflation occurs when

a. consumers begin purchasing more goods.

b. producers need more money to make and distribute goods.

c. the government prints more money and pushes prices up.

d. consumers have more money to spend on goods and services.

+4

Answers (1)

Know the Answer?

Gunner Chang · Answer 1

b. producers need more money to make and distribute goods.

Explanation:

The explanation is in the name of the concept.

The cost-push inflation is caused by the cost of producing a good. It's usually the result of an increase in costs of raw materials or of labor. Then the producer needs to forward that additional cost down the distribution line to the final consumer.

This price hike could be temporary (due to bad weather that increased the scarcity of a fruit for example), but once the prices go up, they rarely return to their previous value.

Cost-push inflation occurs whena. consumers begin purchasing more goods.b. producers need more money to make and distribute goods.c. the government prints more money and pushes prices up.d. consumers have more money to spend on goods and services.

Cost-push inflation occurs when

a. consumers begin purchasing more goods.

b. producers need more money to make and distribute goods.

c. the government prints more money and pushes prices up.

d. consumers have more money to spend on goods and services.