Ask Question
21 September, 10:03

Which of the following best explains cost-push inflation?

+5
Answers (1)
  1. 21 September, 10:23
    0
    Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Higher costs of production can decrease the aggregate supply (the amount of total production) in the economy. Since the demand for goods hasn't changed, the price increases from production are passed onto consumers creating cost-push inflation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following best explains cost-push inflation? ...” in 📗 Social Studies if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers