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Which of the following will likely lead to cost-push inflation? Select the two correct answers. (1 point)
An increase in the price of oil has reduced supply of all goods and services that use oil as an input.
An ongoing war causes government spending to nearly double in quantity.
O A tornado destroys factories and lowers supply levels throughout the economy.
Exports increase dramatically after a relative drop in price.
O Consumers become more comfortable with debt, increasing their spending as they take on more loans.

Respuesta :

Baraq

Considering the available options, the statements that will likely lead to cost-push inflation include "An increase in the price of oil has reduced supply of all goods and services that use oil as an input."

The other options that will likely lead to cost-push inflation are "Consumers become more comfortable with debt, increasing their spending as they take on more loans."

What is Cost-Push inflation?

Cost-Push inflation is a type of inflation caused by the rise in the cost of wages and raw materials.

This implies that the rise in wages allows the consumers to spend more money on limited supply.

Also, when the rise in the cost of materials reduced the supply of all goods and services.

Hence, in this case, it is concluded that the correct answer is options A and E.

Learn more about Cost-Push inflation here: https://brainly.com/question/4540785

Unstoppable100

Correct Answers:

- An increase in the price of oil has reduced supply of all goods and services that use oil as an input.

- A tornado destroys factories and lowers supply levels throughout the economy.

Hope this helps!

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