Cost-push inflation
What Cost-push inflation means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Cost-push inflation
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Reference: Pearson Edexcel
Inflation caused by an inward shift in short-run aggregate supply, perhaps due to rising raw material costs.
Happens when firms experience rising production costs and pass these onto consumers through higher prices.
Topics that use Cost-push inflation
- Inflation (Pearson Edexcel A-Level)
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Demand-pull inflation
- Stagflation
- Aggregate Demand (AD)
- Business uncertainty
- Costs of production
- Deflation
- Disinflation
- Factors of production
Using Cost-push inflation in the exam
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