What is cost push inflation, Microeconomics

What is Cost Push Inflation

Cost Push Inflation :   When a cost of production (e.g. wages) enhances and firms put up prices to maintain profits. Cost increases may occur because wages have gone up or because raw material prices have enhanced. It is important not to muddle cost-push with demand-pull inflation. Cost-push inflation occurs when costs have risen independently of demand. 


Posted Date: 8/2/2013 2:04:14 AM | Location : United States

Related Discussions:- What is cost push inflation, Assignment Help, Ask Question on What is cost push inflation, Get Answer, Expert's Help, What is cost push inflation Discussions

Write discussion on What is cost push inflation
Your posts are moderated
Related Questions
Elasticity is a term broadly used in economics to signify the “responsiveness of one variable to changes in to another.” Types of Elasticity can be explained as follows: Th

Q. What is working of world Bank? An international financial organization formed after World War II and based in Washington D.C. Its supposed purpose is to promote economic dev

Mathematical representation - Inflation Unemployment Trade-off : Suppose that firms correctly perceive the state of demand in the economy and the rate of price inflation. The

Determinants of Private Demand - Waiting-Time for Employment ‘Waiting time’ for employment is another important factor. The waiting time varies from course to course. For inst

THEORY OF PRODUCTION: Production activities related to goods and services require inputs. Typically, the set of inputs includes labour, capital equipments and raw materials. T

"Describe the current Australian economic situation and support your claims with relevant economic indicators and variables.  The RBA has maintained the cash rate of 4.75% for the

explain about integrability problem

What two important functions are performed by the price system? (1) The price system is an automatic method for distributing goods and services. (2) The price system defines t

Implicit in these analyses is the fact that without government we could have neither shortage nor surplus.  In large calculates, the suspicion of government is due to it has the po