Question

. Which out of the following is
phenomenon that leads to Cost-Pus
Inflation?
Answer
A.
It is a situation when aggreg
demand in an economy outpaces
aggregate supply
B. It is a situation of persistent
inflation along with dip in growth
increase in unemployment
C. It is a situation caused by a
increase in prices of inputs like
material etc​

Answer 1

Shortages or cost increases in labor, raw materials, and capital goods create cost-push inflation. These components of supply are also part of the four factors of production. Cost-push inflation can only occur when demand is relatively inelastic. ... For example, inelastic demand occurs with gasoline.

Answer 2

If we deduct grants to states for the creation of capital assets from revenue deficit, we arrive at