Cost-push inflation occurs when?

Question

Social Studies

Lana Moran

19 July, 06:37

Cost-push inflation occurs when?

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Answers (2)

Know the Answer?

Kelly Randall · Answer 1

Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials.

Makai Hull · Answer 2

Cost-push inflation happens when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Cost-push inflation can occur when higher costs of production decrease the aggregate supply (the amount of total production) in the economy.