A persistence rise in the prices of inputs will lead to

Step 1: Analyze the question The question asks what happens when the prices of inputs (raw materials, labour, fuel, etc.) keep rising persistently.

Step 2: Explain the concept Inflation is a persistent rise in the general price level. It is classified by its cause:

• Cost-push inflation happens when the cost of production rises (higher wages, more expensive raw materials, higher fuel prices). Producers pass these higher costs to consumers as higher prices.
• Demand-pull inflation happens when total demand exceeds total supply ("too much money chasing too few goods").
• Hyperinflation is extremely rapid, uncontrolled inflation (often over 50% per month).
• Stagflation is a combination of high inflation, high unemployment and stagnant economic growth.

Step 3: Work through the options

• Rising input prices push up the cost of producing goods. Firms raise their selling prices to protect profit margins. That is cost-push inflation, so A fits.
• B is wrong because the cause here is on the supply or cost side, not excess demand.
• C is wrong because nothing in the question suggests extreme, runaway price increases.
• D is wrong because stagflation involves rising unemployment and stagnation too. Cost-push pressures can contribute to it, but the question only describes input prices, and the direct, defining result is cost-push inflation.

Step 4: Answer The correct option is A. cost-push inflation.

Tip: Link the word to the cause. "Cost-push" means costs push prices up, so look for keywords like input prices, wages, raw materials or fuel. "Demand-pull" means demand pulls prices up, so look for keywords like excess spending, money supply, or too much demand.