ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Cost-push inflation
|
|
|
Demand-pull inflation
|
|
|
Price-push inflation
|
|
|
Supply-pull inflation
|
|
|
None of the answers
|
Detailed explanation-1: -Definition: 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.
Detailed explanation-2: -The correct answer is Increase in money supply and Fall in production. Inflation is a caused when there is an increase in money supply and fall in production. Also occurs due to rising prices of goods and services in an economy.
Detailed explanation-3: -Cost-push inflation is the decrease in the aggregate supply of goods and services stemming from an increase in the cost of production. An increase in the costs of raw materials or labor can contribute to cost-pull inflation.
Detailed explanation-4: -Primary Causes. Increase in Public Spending. Deficit Financing. Increased Velocity of Circulation. Population Growth. Hoarding. Genuine Shortage. Exports. More items
Detailed explanation-5: -Demand-pull. Cost-push. Increased money supply. Devaluation. Rising wages. Monetary and fiscal policies. 4 days ago