An increase in the prices of factor inputs may result in
ECONOMICS
WAEC 2019
An increase in the prices of factor inputs may result in
- A. demand-pull inflation
- B. stagflation
- C. open inflation
- D. cost-push inflation
Correct Answer: D. cost-push inflation
Explanation
Cost-push inflation occurs when overall prices increase (inflation) as a result of increases in the cost of wages and raw materials.
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