Cost-push inflation occurs when

1) Consumers begin purchasing more goods

2) producers need more money to make and distribute goods

3) the government prints more money and pushes prices up

4) consumers have more money to spend on foods service

Question

Social Studies

Augustus Lynch

6 May, 06:34

Cost-push inflation occurs when

1) Consumers begin purchasing more goods

2) producers need more money to make and distribute goods

3) the government prints more money and pushes prices up

4) consumers have more money to spend on foods service

+1

Answers (2)

Know the Answer?

Kaylie Roach · Answer 1

The correct answer is 2. Producers need more money to make and distribute goods.

Explanation:

Cost-push inflation consists of the increase of costs related to wages as well as raw materials. This situation produces an increase of all prices which is known as inflation. When there is an increase in the costs of production, the aggregate supply will decrease.

If production costs in a company increase, people who are in charge of the company must increase products' prices to manage the additional costs. If a company does not do this, the company's profits will be minor.

Cory Molina · Answer 2

Producers need more money to make and distribute goods

Cost-push inflation occurs when1) Consumers begin purchasing more goods2) producers need more money to make and distribute goods3) the government prints more money and pushes prices up4) consumers have more money to spend on foods service

Cost-push inflation occurs when

1) Consumers begin purchasing more goods

2) producers need more money to make and distribute goods

3) the government prints more money and pushes prices up

4) consumers have more money to spend on foods service