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An increase in the prices of factor inputs may result in

Economics
WAEC 2019

An increase in the prices of factor inputs may result in

  • A. demand-pull inflation
  • B. stagflation
  • C. open inflation
  • D. cost-push inflation
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Correct Answer: Option D
Explanation

Cost-push inflation occurs when overall prices increase (inflation) as a result of increases in the cost of wages and raw materials.

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