Which of the following is a cause of cost-push inflation?
Select ONE answer:
- an increase in bank lending
- an increase in a budget deficit
- an increase in the price of raw materials
- an increase in the value of exports sold
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS5 classes.
The answer is 3
- A cause of demand-pull inflation.
- A cause of demand-pull inflation.
- Correct: An increase in the price of raw materials would raise firms’ costs of production.
- A cause of demand-pull inflation.
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