JAMB Economics 2017 Objective — Question 30

Question 30 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2017 Objective paper, with the correct answer and a full explanation.

Cost-push inflation occurs when

A. production cost is highCorrect
B. government embarks on deficit financing
C. factor prices decrease
D. there is too much money in circulation

Explanation

Cost-push inflation results from high production costs being passed on as higher prices.

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