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UI Post-UTME Economics 2021 (Model questions) Question 13

Question 13

Money and Inflation

Increase in labour cost results to.....

  1. A.Hyper inflation
  2. B.Stagflation
  3. C.Cost push inflation
  4. D.Demand pull inflation.
Show the answer and explanation

Answer: C (Cost push inflation)

Explanation

Higher costs of production such as wages push prices up: cost-push inflation.