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When price increases due to increase in factor prices it is ______.
Demand pull inflation
Cost pull inflation
Stagflation
None of the above.
Cost-push inflation is a type of inflation caused by substantial increases in the cost of important goods or services where no suitable alternative is available. Higher prices are then the result, as costs of production increases due to a decreased aggregate supply. It stands in contrast to demand-pull inflation. Both accounts of inflation have at various times been put forward with oftentimes inconclusive evidence as to which explanation is superior.
By: Barka Mirza ProfileResourcesReport error
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