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Nataly [62]
3 years ago
14

Which factor caused higher oil prices to directly lead to inflation?

Social Studies
2 answers:
IrinaVladis [17]3 years ago
3 0

<u>Answer:</u>

<em>Companies passed on production and transportation costs to consumers</em>

<u>Explanation:</u>

An increase in oil prices will add to a higher inflation level. This is on the grounds that transport costs will rise prompting more increased prices for many products. <em>This will be cost-push inflation which is very unique to inflation brought about by rising aggregate excess/demand growth. </em>

Consumers will see a decline in unrestricted income. They bear a higher cost of transportation, yet don't have the compensation of income rise. <em>Higher oil costs can prompt slower economic development – especially an issue if consumer spending is less.</em>

asambeis [7]3 years ago
3 0

Answer:

<u>B.) Companies passed on production and transportation costs to consumers.</u>

hope this helps!

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