Which of the following statements is/are correct regarding Cost-Push Inflation?
1. Cost-push inflation can occur when higher costs of production decrease the aggregate supply in the economy.
2. Increased labour costs can create cost-push inflation
3. Rising prices caused by consumers is an example of cost-push inflation.
Select the correct answer using the codes given below:
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3