Upward revision of administered prices results in ____________ inflation.

demand pull

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cost push

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stagflation

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deflation

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Solution

The correct option is B cost push
Administered prices are prices of goods set by the internal pricing structures of firms that take into account and factor cost rather than pricing through the market forces of supply and demand. Therefore, increase in such prices directly impacts the general price level in the economy from the supplier side which pushes the price of the commodities upwards and hence results in cost push inflation.

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