Describe Cost-Push Inflation and Its Major Source

question 9

Essay

Describe cost-push inflation and its major source.

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Definitions:

Public Saving

is the difference between the taxation revenue that the government receives and its spending.

National Saving

The total amount of savings generated within a country, including both private and public savings, which is key to funding investment.

Tariff

A tax imposed by a government on imported goods, often to protect domestic industries from foreign competition.

Imports

Goods and services bought from foreign countries for domestic consumption or use.