Solved UPSC CDS/OTA Question
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Q · InflationMedium · 45s
Consider the following statements: 1. Demand-pull inflation occurs when aggregate demand exceeds aggregate supply. 2. Cost-push inflation is caused by an increase in production costs. Which of the above is/are correct?
TopicInflation
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Demand-pull is driven by excessive demand; cost-push arises from rising input costs like wages or raw materials.
Final Answer: Option C — Both 1 and 2