Regarding the concept of inflation, consider the following statements:

Cost-Push Inflation occurs due to rising production costs.

Demand-Pull Inflation is caused by an increase in consumer demand.

Hyperinflation is defined as inflation exceeding 50% per month.

Stagflation refers to inflation in a stagnant economy with high unemployment.

How many of the above statements are correct?

Question

Cost-Push Inflation occurs due to rising production costs: This is correct. It results from increased costs of production leading to reduced supply.
Demand-Pull Inflation is caused by an increase in consumer demand: This is correct. It occurs when demand outpaces supply, driving prices up.
Hyperinflation is defined as inflation exceeding 50% per month: This is correct. Hyperinflation is an extremely high and typically accelerating inflation rate.
Stagflation refers to inflation in a stagnant economy with high unemployment: This is correct. Stagflation combines stagnant economic growth with inflation and high unemployment.

Thus, all four statements are correct.

GKToday Admin · Accepted Answer

All four

Cost-Push Inflation occurs due to rising production costs: This is correct. It results from increased costs of production leading to reduced supply.
Demand-Pull Inflation is caused by an increase in consumer demand: This is correct. It occurs when demand outpaces supply, driving prices up.
Hyperinflation is defined as inflation exceeding 50% per month: This is correct. Hyperinflation is an extremely high and typically accelerating inflation rate.
Stagflation refers to inflation in a stagnant economy with high unemployment: This is correct. Stagflation combines stagnant economic growth with inflation and high unemployment.

Thus, all four statements are correct.

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