Question

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

Answer 1

Answer:

B. Producers need more money to make and distribute goods.

Explanation:

Cost push inflation happens when the supply costs rises or when the supply amounts fall.

The above two shall cause hike in the product price since the producer shall be using extra amounts of capital in the production process due to the scars supply of raw inputs.

The above situation is known as Cost-push inflation

Answer 2

Answer:

B. Producers need more money to make and distribute goods.

Explanation:

Cost push inflation happens when the supply costs rises or when the supply amounts fall.

The above two shall cause hike in the product price since the producer shall be using extra amounts of capital in the production process due to the scars supply of raw inputs.

The above situation is known as Cost-push inflation