Economics · Inflation and Business Cycles
Consider the following statements regarding cost-push inflation: Statement I: Cost-push inflation is primarily driven by a decrease in the aggregate supply of goods and services in the economy. Statement II: This type of inflation is often triggered by an increase in the cost of production inputs, such as raw materials and labor wages. Which of the above statements is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Neither Statement I nor Statement II is correct
- 2Both Statement I and Statement II are correct✓
- 3Only Statement II is correct
- 4Only Statement I is correct
Correct answer
Both Statement I and Statement II are correct
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Inflation and Business Cycles MCQs →Want more practice questions on Inflation and Business Cycles?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Inflation and Business Cycles