ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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another common type of inflation is cost push inflation which is caused by
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higher inflation rates in other countries so it is passed on
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increased costs of production which shift the AS curve to the right
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increased cost of production which shift the SAS to the left
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when export prices push up domestic prices because they are dearer than in the domestic economy
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Explanation:
Detailed explanation-1: -Shortages or cost increases in labor, raw materials, and capital goods create cost-push inflation.
Detailed explanation-2: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-3: -When a supply shortage happens-due to a natural disaster, an increase in labor prices or supply chain problems-companies typically respond by increasing their prices to cover higher production costs. This is referred to as cost-push inflation.
Detailed explanation-4: -Deficit financing. Increase in administrating prices. Increase in interest rates. Increase in population. Increase in oil prices. Mounting public expenditure.
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