Which of these is most likely to lead to inflation? (30 points)
a) an increase in the costs of production
b) reduced prices for goods and services
c) an increase in the aggregate supply of goods and services
d) the application of price ceilings

A) An Increase in the costs of production

Explanation:

Inflation is the economic process that it´s ocassioned by the production and demand imbalance, the products and services normally raise their fees, and the purchasing power of money loses its value.

Sometimes, for different reasons the government makes economic reforms, raising taxes, or charging new ones depending on the national needs, this makes and contributes in an important way to the necesity to raise the production costs (that technically ¨raise by themselves¨ when a higher percentage of taxes is added, or similar scenario happens).

So exactly the same product a person purchased before in a lesser pricing, it will inevitebaly will be more expensive, due the production costs.

So increasing the costs of production in the first place due a determined government reason, will lead to inflation, since it will inevitably start the imbalance between the demand and the production itself

A) Increase in costs of production

Explanation:

When goods cost more to produce, this causes inflation since money starts to lose value

a.indigo and cochineal

b.animal hides

c.silver and gold

e.cacao beans and sugarcane