"Shoe Industry Under Pressure Amid Rising Costs " Rising Costs

Multiple Choice

"Shoe Industry under Pressure Amid Rising Costs " Rising costs have forced about 15 per cent of shoe manufacturers in a major south China industrial centre to shut down or relocate in the past year... [the firms have] identified rising wages as a key factor behind the closures and relocations from Dongguan...The problems in the footwear industry reflect broader issues affecting manufacturers across China's Pearl River Delta..."
Www) ft.com, 2/26/2008
As the same pressures affect other industries across China, we expect to see

A) demand-pull inflation.
B) a combination of cost-push and demand-pull inflation.
C) cost-push inflation.
D) a downward movement along the short-run Phillips curve.