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QuizMultiple Choice

Inflation and Stagflation — Quiz

Question 1 • Personal Finance and Economics

Cost-push inflation occurs when

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

Explanation

Cost-push inflation happens when the costs of producing or distributing goods and services rise. Businesses may then raise prices to cover those higher costs, so the correct choice is “producers need more money to make and distribute goods.”

AI-written and checked against the verified answer.

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