97.6k views
3 votes
When increased raw material costs increase prices for consumers, the situation is known as _______ inflation.

1 Answer

3 votes
When increased raw material costs increase prices for consumers, the situation is known as cost-push inflation.

Reason:

Cost-Push is defined as: an increase in prices of inputs like labor, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.
User Valerie S
by
8.7k points

No related questions found