Concept:A sustained rise in the cost of production inputs pushes up the general price level.
Explanation:Inputs of production include essential factors such as labour, raw materials, energy, and capital equipment.
When the prices of these inputs rise persistently, producers face higher total production costs.
To protect their profit margins, producers pass these higher costs on to consumers by raising the prices of finished goods and services.
Over time, this continued rise in the cost of inputs keeps pushing the general price level upward in the economy.
This type of inflation is not driven by excess demand from consumers; rather, it originates from the supply side, where increasing input costs reduce aggregate supply.
Therefore, a persistent rise in the prices of inputs directly results in cost-push inflation.
Answer:A. cost push inflation