Cost - push inflation occurs when_______

  • A production cost is high
  • B government embarks on deficits financing
  • C factors decrease
  • D there is too much in circulation
jamb 2017economics

The correct answer is A. production cost is high

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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