Final answer:
Cost-push inflation occurs when production costs, like wages or raw material prices, rise, and this results in an increase in the overall price level of goods and services in the economy.
Step-by-step explanation:
Inflation initiated by increases in wages or other resource prices is labeled as cost-push inflation. Unlike demand-pull inflation, where higher demand for goods and services pulls up prices, cost-push inflation occurs when the cost of production increases, leading to an increase in the price level of goods and services throughout the economy. This can happen due to various reasons, such as increased wages, higher raw material costs, or other inputs. This type of inflation reflects ongoing pressure for prices to rise, and not just a one-time shift from a previous equilibrium to a new one, which would not be considered persistent inflation.