When natural disasters,such as hurricanes on the U.S.Gulf Coast or an earthquake in Japan,disrupt supply chains and push up the costs of production,this may result in

Question

Quizplus · Accepted Answer

The scenario described is an example of cost-push inflation, as the increase in production costs resulting from the disruption of supply chains is leading to higher overall prices for goods and services. This is different from demand-pull inflation, which occurs when an increase in demand for goods and services outpaces their supply and leads to price increases. Labor-push inflation refers to inflation resulting from increases in labor costs, while wage-pull inflation is a subset of this where wage increases lead to price increases.

When Natural Disasters,such as Hurricanes on the U