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 Form 4 online business studies lessons on inflation

Causes of cost-push inflation

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Answer Text:
causes of cost-push inflation:
-increase in wages as a result of demands by trade unions or government policy
-drive for higher profit margin by producers causing a general rise in prices.
-rapid increase in input prices like cost of machines,technology,equipment etc
-reduction of subsidies provided by the government raisng the cost of production.
-Imposition of high indirect taxes by the government at the production level.