Question

    Cost-push inflation is primarily caused

    by:
    A Fall in aggregate demand Correct Answer Incorrect Answer
    B Rise in production costs Correct Answer Incorrect Answer
    C Increase in consumer savings Correct Answer Incorrect Answer
    D Cut in fiscal deficit Correct Answer Incorrect Answer
    E Strengthening of rupee Correct Answer Incorrect Answer

    Solution

    Cost-push inflation arises when input costs (wages, energy, raw materials) rise, forcing producers to increase prices despite stagnant demand.

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