Answer:
There are three main types of inflation: demand-pull, cost-push, and built-in inflation. Demand-pull inflation occurs when the overall demand for goods or services increases faster than the production capacity of the economy. Cost-push inflation happens as a result of an increase in the cost of production.
Explanation:
Answer:
b) cost-push theory
Explanation:
Options:
a) experience inflation
b) cost-push theory [Correct]
c) deficit of the federal government
d) None of the above
Labor groups, according to the cost-push hypothesis, are responsible for inflation, as a third explanation.
