Which of the following is a cause of cost-push inflation?
A. Increase in aggregate demand
B. Increase in money supply
C. Increase in government spending
D. Increase in wages and raw material costs
Answer: Option D
Solution (By JKSSB Mock Tests)
Cost-push inflation arises when the cost of production increases due to higher wages, raw material prices or other input costs, leading to higher prices.
Explanation:
A Pareto efficient allocation is one where it is impossible to make any individual better off without making at least one individual worse off.
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