Which of the following might result from increased costs of production (especially wages) without increased demand, so that producers have to increase their prices to maintain profitability?

Which of the following might result from increased costs of production (especially wages) without increased demand, so that producers have to increase their prices to maintain profitability?
A . Demand-pull inflation
B . Cost-push inflation
C . Monetary inflation
D . Stagflation

View Answer

Answer: B

Explanation:

Inflation, in this case, is created by the increased cost of production coming through into the economy.

The other answers are essentially names of alternative types of inflation.