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Which type of inflation is harder to control and may require allowing temporary inflation factors to come to an end?
  • a)
    Demand-pull inflation.
  • b)
    Cost-push inflation.
  • c)
    Hyperinflation.
  • d)
    Structural inflation.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which type of inflation is harder to control and may require allowing ...
Cost-push inflation, caused by factors such as rising input costs or external shocks, is harder to control through monetary policy alone. In cases of cost-push inflation, allowing temporary inflation factors to come to an end might be a more suitable approach, as reducing aggregate demand could worsen economic conditions. Cost-push inflation often requires addressing the underlying factors causing cost increases.
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Which type of inflation is harder to control and may require allowing temporary inflation factors to come to an end?a)Demand-pull inflation.b)Cost-push inflation.c)Hyperinflation.d)Structural inflation.Correct answer is option 'B'. Can you explain this answer?
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