Which of the Following Would Be Expected to Cause an Increase

Multiple Choice

Which of the following would be expected to cause an increase in the inflation rate rather than a once-and-for-all increase in the price level?

A) the imposition of a new sales tax
B) the sudden doubling of a key raw materials price
C) a new payroll tax that raises unit wage costs
D) expectations of higher future inflation
E) an early frost that damages the agricultural harvest