Get premium membership and access revision papers with marking schemes, video lessons and live classes.
  OR
Processing. Please wait.

 Form 4 online business studies lessons on inflation

Causes of cost-push inflation

 (5m 54s)
1064 Views     SHARE

Download as pdf file

Answer Text:
causes of cost-push inflation:
-increase in wages as a result of demands by trade unions or government policy
-drive for higher profit margin by producers causing a general rise in prices.
-rapid increase in input prices like cost of machines,technology,equipment etc
-reduction of subsidies provided by the government raisng the cost of production.
-Imposition of high indirect taxes by the government at the production level.


|