Question

Cost-push inflation occurs when
Responses

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

consumers begin purchasing more goods.
consumers begin purchasing more goods.

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

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

Answer 1

Producers need more money to make and distribute goods.

Explanation: Cost-push inflation arises from higher production costs (wages, raw materials, energy, taxes, regulations) that reduce aggregate supply and raise prices.