Concept:Cost-push inflation happens when a rise in the prices of factor inputs increases production costs and pushes up the general price level.
Explanation:Factor inputs include land, labour, capital, and entrepreneurship.
When the prices of these inputs rise, the cost of producing goods and services also rises.
Producers then pass on these higher costs to consumers by raising the prices of their products.
This leads to an overall increase in the price level, which is known as inflation.
Because this inflation is caused by rising costs on the supply side, it is specifically called cost-push inflation.
It is different from demand-pull inflation, which occurs when aggregate demand exceeds aggregate supply.
It is also different from stagflation, which describes a situation of high inflation combined with high unemployment and slow growth.
Answer:D. cost-push inflation