Jarriouswesley7idn
Answered

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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.

Sagot :

GinnyAnsweridn

Final answer:

Cost-push inflation is caused by increased production costs, leading to a decrease in supply and higher prices. Printing more money by the government can devalue existing currency and contribute to inflation.


Explanation:

Cost-push inflation occurs when there is an increase in the costs of production, leading to a decrease in the supply of goods and raising prices. This is different from demand-pull inflation where there is too much money chasing too few goods.

One major reason for cost-push inflation are supply shocks, such as the oil crisis in the 1970s which increased production costs and prices. When the government prints more money, it can lead to inflation as existing money becomes less valuable.


Learn more about Inflation here:

https://brainly.com/question/51526287


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