If One of the Reasons for the Growing Inflation Rate

question 25

Multiple Choice

If one of the reasons for the growing inflation rate is due to increases in production costs of goods and services that occurred as a result of a decline in a suitable labour force, this would be an example of which type of inflation?

• A) cost-push
• B) supply-side
• C) cost-pull
• D) demand-push

---

Definitions:

Operating Activities

Operating activities include the primary, day-to-day tasks and transactions related to running a business, which contribute to generating revenue.

Direct Method

A cash flow statement reporting approach that lists major operating cash receipts and payments during a period.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflow and outflow a company receives from its ongoing operations and external investment sources.

Operating Activities

Involves the day-to-day actions that are taken for the main operations of a business, such as sales and purchase of goods or services, which are reflected in the cash flow from operating activities in the financial statements.