Which of the following is considered a cause of inflation?
B. Producers raise prices to meet higher costs.
C. There is not enough money in the economy.
D. Demand is less than supply.
I think the answers B
You are correct. Option B, "Producers raise prices to meet higher costs," is considered a cause of inflation. When producers experience higher costs, such as increased wages or raw material prices, they may choose to pass those costs onto consumers by raising prices. This increase in prices can lead to inflation, as it reduces the purchasing power of money and creates a general rise in the overall price level.
To identify the cause of inflation, it is crucial to understand the factors involved. In this case, recognizing that producers can raise prices due to higher costs is key. By analyzing the relationship between the cost of production and the actions taken by producers, we can determine that option B is a likely cause of inflation.