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Cost push inflation is likely to arise when

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Economics WAEC 2016

Cost push inflation is likely to arise when

  • there is an increase in banking lending
  • there is an increase in subsidies
  • stock exchange
  • rise in the cost of production. checkmark

The correct answer is: D

Explanation

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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