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Sagot :
Inflation initiated by increases in wages or other resource prices is labeled b) cost-push inflation.
Cost-push inflation (also known as wage-push inflation) occurs when higher wages and raw material costs (inflation) cause overall prices to rise. Higher production costs can reduce total supply (total output) in the economy.
Definition: Cost-push inflation is inflation caused by rising prices of inputs such as labor, commodities, etc. As the prices of the factors of production increase, the supply of these commodities decreases.
Cost inflation occurs when the cost of utilities increases or the level of utilities decreases. Both will push prices higher unless demand changes. Shortages and rising costs of labor, raw materials and capital goods lead to higher costs.
Learn more about cost-push inflation here: https://brainly.com/question/17161533
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