Cost – push inflation occurs when_______

Economics JAMB 2017

Cost – push inflation occurs when_______

  • production cost is high checkmark
  • government embarks on deficits financing
  • factors decrease
  • there is too much in circulation

The correct answer is: A

Explanation

Cost push inflation occurs when increase in cost of production are passed on to consumers in the form of high price for the goods and services on sale. The price of goods are pushed up by rising costs.
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