Which of the Following Statements About Inflation Is True

Multiple Choice

Which of the following statements about inflation is true?

A) A major flood that destroys an important crop could cause cost-push inflation.
B) Demand-pull inflation tends to occur as the rate of unemployment in the economy increases.
C) Inflationary pressure comes only from the buyers' side of the market, or only from the sellers' side of the market.
D) Expectations by businesses and households about future economic conditions have no effect on inflationary pressure.