What is cost-push inflation, Macroeconomics

Assignment Help:

What is Cost-push inflation

Cost-push inflation takes place when costs of production increase causing short-run aggregate supply curve to shift to left.

The main causes of cost-push inflation are rising prices of raw materials, gas, oil and food or a sudden increase in wage rates. Increased business costs imposed on firms squeeze profit margins and force firms to push up their prices which then causes cost-push inflation.

Cost-push inflation experienced in UK since 2009 has two major sources. First the devaluation of sterling on currency markets has made imported services and goods into the UK more costly. Second the global increases just noted in prices of energy, food and commodities have been causing a cost-push inflation in the UK.

 


Related Discussions:- What is cost-push inflation

Aggregate demand and aggregate supply model, In the late 1990s, a growing n...

In the late 1990s, a growing number of economists expressed concern that the world policy makers were often focusing too much on fighting inflation, without fully taking into accou

Accounting system-example i, ACCOUNTING SYSTEM-EXAMPLE I  Consider a ve...

ACCOUNTING SYSTEM-EXAMPLE I  Consider a very simple economy. It consists of a. A number of households. b. A single productive organization, a 'firm' - say the Jam Corpora

Economics, n 2013, approximately 58 percent of the adult population (245 mi...

n 2013, approximately 58 percent of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession l

Negative performances of the economy, An advantage of observing statistics ...

An advantage of observing statistics from this range is that it encapsulates both positive and negative performances of the economy helping to produce a much more accurate insight

Measurement of national income, what are the two precautions required while...

what are the two precautions required while estimating national income by value added method?

#title.national income ddetermkination, explain how national income is dete...

explain how national income is determined under the following economies; 1.frugal economy 2.governed economy

Firms in the circular flow, We divide all firms into 3 categories: FR inclu...

We divide all firms into 3 categories: FR includes all firms which acquire raw material (iron ore, farm products and so on), FH all those that produce semi-manufactured goods (stee

Employment, critically analyse the ways at which the government of zimbzbwe...

critically analyse the ways at which the government of zimbzbwe has put in place to address unequal employment opportunities between men and women

Aggregate demand and aggregate supply, Find one or more articles in the wal...

Find one or more articles in the wall street Journal or other business publications that describe changes in fiscal or monetary policies in the United States. Discuss how these pol

National income, # ???? .. difference between gdp at market price and nnp...

# ???? .. difference between gdp at market price and nnp at factor cost

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd