What is cost-push inflation, Macroeconomics

Assignment Help:

What is Cost-push inflation

Cost-push inflation takes place when costs of production increase causing short-run aggregate supply curve to shift to left.

The main causes of cost-push inflation are rising prices of raw materials, gas, oil and food or a sudden increase in wage rates. Increased business costs imposed on firms squeeze profit margins and force firms to push up their prices which then causes cost-push inflation.

Cost-push inflation experienced in UK since 2009 has two major sources. First the devaluation of sterling on currency markets has made imported services and goods into the UK more costly. Second the global increases just noted in prices of energy, food and commodities have been causing a cost-push inflation in the UK.

 


Related Discussions:- What is cost-push inflation

Relation between poverty and growth, what is the relationship betwen growth...

what is the relationship betwen growth and poverty? either it is positive or negative?

Relate overnight interest rates targets with money supply, Relate Overnight...

Relate Overnight interest rates targets with money supply There are many ways to explain the important connection between the overnight interest rate target and the money suppl

Keynesian cross in an open economy, why does the price level not enter desi...

why does the price level not enter desire consumption, investment and net exports of the desired aggregate expenditure function in the keynesian cross model

Decrease the nominal deficit, Which of the following will decrease the nomi...

Which of the following will decrease the nominal deficit? A. An increase in taxes. B. An increase in the debt. C. An increase in government expenditures. D. An increase in interest

Two banks for financing, You decide to buy a home for $1,000,000. You appro...

You decide to buy a home for $1,000,000. You approach two banks for financing. The first requires a 10% down payment and requires monthly payments on a 20 year mortgage sufficient

Consumer safety and product information, Can you think of examples where th...

Can you think of examples where the government does not intervene enough when it comes to consumer safety and product information? Examples where too much intervention is the case

Spss , (I am providing them below) of Module 5 before beginning this assign...

(I am providing them below) of Module 5 before beginning this assignment.  You will have the opportunity to work through much of the assignment during the group activity for week 1

Compare and contrast federal government expenditures, Compare and contrast ...

Compare and contrast federal government expenditures, state and local government expenditures, and financing government expenditures. Suggest a total of three actions that should b

Investments has a larger future value, Which of the following investments h...

Which of the following investments has a larger future value: Investment A an $1,000 investment earning 5% per year for 6 years? Or Investment B a %500 investment earning 10% per y

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd