Question

Cost-push inflation occurs when:

Answer 1

Short answer D
Labor costs could cause that type of inflation as well.

C is eliminated because Push Cost Inflation is cost increase in what it takes to make a product.

B is gone because it is really deflation not inflation. This answer implies a drop in price. Inflation is an increase in price.

A subsides are an increase in capital. That will lower the price or keep it stable. Not A