Inflation caused by an increase in the per-unit production costs at each level of total spending is called:_____.

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27-07-2022
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Inflation caused by an increase in the per-unit production costs at each level of total spending is called:_____.

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-08-05T15:34:57+02:00

Inflation caused by an increase in the per-unit production costs at each level of total spending is called Cost-push inflation. When overall prices rise as result of rising costs for wages and raw materials, this phenomenon is referred to as cost-push inflation, also referred to as wage-push inflation.

Total amount of production in the economy may decline as result of higher manufacturing costs. Cost-push inflation results from the manufacturing price increases being passed on to consumers because demand for goods hasn't altered. Cost-push inflation results from manufacturing price increases being passed on to consumers because demand for goods hasn't altered.

To learn more about Cost-push, click here.

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