Cost-push inflation can occur as the result of higher wage rates.

Name: Cost-push inflation can occur as the result of higher wage rates.
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Question

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When wages increase, firms will have to pay more to produce goods and services. This results in an increase in the cost of production, which leads to an increase in the prices of goods and services. Hence, cost-push inflation occurs as a result of higher wage rates.

Cost-Push Inflation Can Occur as the Result of Higher Wage