JAMB Economics 2022 Objective — Question 2

Question 2 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2022 Objective paper, with the correct answer and a full explanation.

2. Wage crisis will most likely lead to

A. (A) demand pull inflation
B. (B) cost push inflationCorrect
C. (C) temporary inflation
D. (D) wage-influenced inflation

Explanation

Wages are part of the cost of production, so a rise in wages (from a wage crisis) increases production costs and pushes prices up — cost-push inflation.

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