SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level (DONEEEEEEE)

» Start this Course
(Practice similar questions for free)
Question:

Explain how Rising Wages can lead to Cost Push Inflation

Author: eric_galvao



Answer:

If wages makes a large % of Firms Costs, then this mean Prices can rise noticably. Prices rises means that Further Wage Demands may be needed, leading to Pricer Increases [Wage-Price Spiral]


0 / 5  (0 ratings)

1 answer(s) in total