Question

Among the following which best defines the cost push inflation?
A) an increase in price because of extreme growth in aggregate demand
B) An increase in price because of an increase in the price of a firm's inputs
C) Increase in thr prices because of an over rapid growth in the money supply
D) over a period of decline in prices​

Answer 1

Explanation:

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. ... The opposite effect of this is called demand pull inflation where higher demand triggers inflation.