ECONOMICS (CBSE/UGC NET)

Previous
Next

ECONOMICS

GDP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Inflation initiated by increases in wages or other resource prices is labeled:
A
demand-pull inflation.
B
demand-push inflation.
C
cost-push inflation.
D
cost-pull inflation.
Explanation: 

Detailed explanation-1: -Cost-push inflation (also known as wage-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.

Detailed explanation-2: -Cost-push inflation happens when there is a decline in the supply of goods and services and demand remains unchanged or even grows, driving prices and inflation higher.

Detailed explanation-3: -Cost-push is one of the two causes of inflation. The other is demand-pull inflation. Demand-pull inflation is the primary cause of inflation. It occurs when the aggregate demand for a good or service outstrips aggregate supply, and it starts with an increase in consumer demand.

Detailed explanation-4: -Wage-Push Inflation: Profit-Push Inflation: Material-Cost-Push Inflation:

There is 1 question to complete.
Previous
Next