20
QuizMultiple Choice

Inflation and Stagflation — Quiz

Question 20 • Personal Finance and Economics

Cost-push inflation occurs when

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

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.