Question

The Inflation caused by an increase in prices of inputs like labour, raw material, etc. is known as:

A Cost Push Inflation Correct Answer Incorrect Answer
B Demand Pull Inflation Correct Answer Incorrect Answer
C Demand Push Inflation Correct Answer Incorrect Answer
D Cost Pull Inflation Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Cost Push Inflation is inflation caused by an increase in prices of inputs like labour, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.

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