Asked by abigail Gimbert on May 17, 2024
Verified
The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:
A) demand-pull inflation.
B) hyperinflation.
C) cost-push inflation.
D) cyclical inflation.
E) disinflation.
OPEC
The Organization of Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations, aiming to manage the supply of oil in an effort to set the price on the world market.
Cost-Push Inflation
Inflation caused by increased costs of production, such as higher prices for raw materials or wages, leading to higher final product prices.
- Determine the factors leading to inflation, particularly cost-push and demand-pull aspects.
Verified Answer
SZ
Steve ZangwaMay 19, 2024
Final Answer :
C
Explanation :
The OPEC oil price increases led to an increase in production costs for businesses, which led to an increase in prices for consumers. This type of inflation is known as cost-push inflation.
Learning Objectives
- Determine the factors leading to inflation, particularly cost-push and demand-pull aspects.