Input costs increase refers to a rise in the prices paid for resources or factors of production used in the production process. It includes expenses such as wages, raw materials, energy costs, and transportation fees.
Cost-push Inflation: A type of inflation caused by an increase in input costs that leads producers to raise prices for their goods and services.
Wage Inflation: An increase in wages paid to workers across various industries due to factors such as labor market conditions or government policies.
Price Elasticity of Supply: A measure that indicates how responsive producers are to changes in input prices. It shows whether an increase or decrease in input costs will significantly affect the quantity supplied.
AP Macroeconomics - 5.3 Money Growth and Inflation
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