4
lesson pretestMultiple Choice

Pretest

Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Cost-push inflation occurs when

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