Q:
What are the three types of inflation?
A:
Quick Answer
The three primary types of inflation are: demand pull inflation, cost push inflation and wage push inflation. In addition, depreciation in the exchange of imported goods can also affect inflation.
Continue Reading
Credit:
PhotoAlto/Odilon Dimier
PhotoAlto Agency RF Collections
Getty Images
Full Answer
Demand pull inflation occurs when demand for a product increases faster than the supply of the product. If a product is more in demand, companies typically push up the price of the product. Cost push inflation refers to the need to increase the cost of the product due to equipment or maintenance fees associated with production. Wage push inflation occurs when the cost to increase employee wages increases the price of the goods to cover the manufacturer's overall company costs.
Learn more about EconomicsSources:
Related Questions
-
Q:
How has the minimum wage changed in Tennessee?
A: As of 2015, Tennessee is one of five states that does not have a state-regulated minimum wage law. Tennessee has historically paid workers according to the... Full Answer >Filed Under: -
Q:
Why is minimum wage important?
A: The minimum wage is important because it raises wages and reduces poverty. Proponents assert that it is needed to protect workers from exploitative employm... Full Answer >Filed Under: -
Q:
What are some advantages to raising the minimum wage?
A: Advantages to raising the minimum wage include reduced income inequality, reduced worker exploitation and underemployment, and increased business activity.... Full Answer >Filed Under: -
Q:
What is the traditional theory of wage determination?
A: The traditional theory of wage determination states that wages for workers will be based off of supply and demand. The supply and demand would be relative ... Full Answer >Filed Under:
