Answers 26-27 Ignite Economics-KY-Economics Banking — Unit testQuestion 6

6

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Banking — Unit test

Question 6 of 24 • 26-27 Ignite Economics-KY-Economics

Which scenario is an example of cost-push inflation?

Answer

A

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

B

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

C

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

D

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

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