WAEC Economics 2016 Objective — Question 37
Question 37 of 50 from the West African Examinations Council (WAEC) Economics 2016 Objective paper, with the correct answer and a full explanation.
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Cost-push inflation is likely to arise when
- A. there is an increase in bank lending
- B. there is an increase in subsidies
- C. demand for higher wages is grantedCorrect
- D. there is a decrease in bank lending
Explanation
When demand for higher wages is granted, the cost of production will increase and this will lead to cost-push inflation.
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