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  9. Q257

RBI Grade B Officer (General / DEPR / DSIM) 2025 · Question 257 of 259

Which of the following statements best explains cost-push inflation in an economy? (This question and theme may not be exact as per the exam.)

Inflation

  1. AA. Inflation caused by excess aggregate demand over aggregate supply during high economic growth
  2. BB. Inflation resulting from an increase in wages and raw material costs, leading to higher production costsCorrect
  3. CC. Inflation arising due to excessive money supply created by the central bank
  4. DD. Inflation caused by higher indirect taxes imposed by the government without any change in costs
  5. EE. Inflation occurring due to increased productivity and technological advancement

Answer: B. B. Inflation resulting from an increase in wages and raw material costs, leading to higher production costs

Official answer key verified. Detailed explanation coming soon.

Source: RBI Grade B Phase 2 2025 Finance and Management recollected questions with answer key (EduTap compilation) · memory-based

← Q256View full paper (259 questions)Q258 →

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