Answers CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY PretestQuestion 3

3

lesson pretestMultiple Choice

Pretest

Question 3 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which scenario is an example of cost-push inflation?

Answer

A

An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.

B

The demand for cars falls as consumers have less disposable income, and car prices fall as a result.

C

A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

D

Consumers have more money to buy cars, and the prices of cars and car parts rise as a result.

More from this Course

10 verified answers

Pretest

10 verified answers

Pretest

10 verified answers

Pretest