Question

Cost-push inflation occurs when

consumers begin purchasing more goods.
producers need more money to make and distribute goods.
the government prints more money and pushes prices up.
consumers have more money to spend on goods and services.

Answer 1

producers need more money to make and distribute goods.

Explanation: cost-push inflation stems from rising production costs (higher wages, raw materials, taxes, supply shocks) that push firms to raise prices, reducing aggregate supply.