Question

Cost-push inflation occurs when____________.a. consumers begin purchasing more goods.b. producers need more money to make and distribute goods.c. the government prints more money and pushes prices up.d. consumers have more money to spend on goods and services.

Answer 1

Answer:

The answer is B.

Explanation:

Cost-push inflation arises as a result of increase in factors of production that firms or businesses use in generating final goods and services.

Producers will want to pass the increase to its consumers and this makes the supply of goods and services to be reduced and this lead to the price of goods and services to be high.

So option B is correct. With this above-mentioned points, producers will need more money to make and distribute goods