Which of the following is an example of cost-push inflation? (1 point)

Question

• Prices of exports decrease
• War causes production of military supplies to increase
• Rise in cost of oil leads to decrease in supply of all goods and services that use oil for an input
O Increase in consumer incomes cause consumer demand to increase

Answer 1

- Rise in cost of oil leads to decrease in supply of all goods and services that use oil for an input

This is an example of cost-push inflation because the increase in the cost of oil directly impacts the production costs of goods and services that rely on oil as an input, leading to a decrease in supply and potentially higher prices.