Which of the following is not a cause of cost-push inflation?
A. energy cost increases.
B. labor cost increases.
C. consumer incomes increase.
D. raw material cost increases.
Answer (2)
Cost-push inflation is caused by rising costs of production factors such as energy, labor, and raw materials. An increase in consumer incomes does not lead to cost-push inflation; instead, it may increase demand leading to demand-pull inflation. Hence, option c is the correct answer. ;
Cost-push inflation is driven by rising production costs like energy, labor, and raw materials. An increase in consumer incomes does not cause this type of inflation; rather, it may lead to demand-pull inflation. Therefore, the chosen answer is C: consumer incomes increase.
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