What is referred by cost push inflation ?
Correct answer: D. increased production costs drive prices up
- A. Decreased production costs drive prices up
- B. Decreased production costs drive prices down
- C. increased production costs drive prices down
- D. increased production costs drive prices up
Explanation
Cost-push inflation begins when wages, raw materials, energy, or other production costs increase, causing firms to raise prices. Thus, increased production costs drive prices up.
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