Question on: WAEC Economics - 2016
Cost push inflation is likely to arise when
A
there is an increase in banking lending
B
there is an increase in subsidies
C
stock exchange
D
rise in the cost of production.
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Correct Option: D
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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