Question

5 multiple choice 1 point what does cost - push inflation mean? when prices rise because consumers want more products than are available when prices rise because the government prints more money when prices rise because businesses reduce competition when prices rise because companies must pay more for resources and labor

Explanation:

To determine the correct answer, we analyze each option:

• The first option describes demand - pull inflation (excess demand).
• The second option is related to monetary inflation (increase in money supply).
• The third option is about inflation due to reduced competition (monopolistic behavior).
• Cost - push inflation occurs when production costs (like resources and labor costs) increase, forcing companies to raise prices. So the last option matches the definition of cost - push inflation.

Answer:

D. When prices rise because companies must pay more for resources and labor (assuming the last option is labeled D; if the original options had different labels, adjust the label accordingly based on the last option's position)