[Solved] Cost-push inflation is primarily caused by: — Ans: Increase in production costs such as wages and raw materials | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Cost-push inflation is primarily caused by:

AIncrease in consumer demand

BIncrease in production costs such as wages and raw materials

CExcess money supply in the economy

DGovernment subsidies on essential goods

Step-by-Step Solution

Step 1: Understand cost-push inflation
Cost-push inflation arises when production costs increase, leading producers to raise prices.
Step 2: Analyze options
Only the increase in production costs such as wages and raw materials fits the cause of cost-push inflation. Other options relate to demand or policy effects.
Final Answer:
Increase in production costs such as wages and raw materials → Option B
Quick Check:
Cost-push inflation = rising production costs ✅

Quick Trick: Cost-push = rising costs push prices up.

Common Mistakes:

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