SSC Economics Sample Paper NCERT Sample Paper-2

  • question_answer
    Which one of the following factors can cause the Cost-Push inflation in an economy?

    A) Oil price shocks in the world

    B) Fluctuation in the production of food-grains

    C) Imposition of high commodity taxes

    D) All of the above

    Correct Answer: D

    Solution :

    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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