I have done this at school, the answer is definitely C!
The first ones increase in demand
Through checks and balances
<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>
