WAEC Economics 2019 Objective — Question 36
Question 36 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.
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An increase in the prices of factor inputs may result in
- A. demand-pull inflation
- B. stagflation
- C. open inflation
- D. cost-push inflationCorrect
Explanation
When the prices of inputs (factors of production) rise, producers pass on the higher cost to the price of output — this is cost-push inflation.
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