which type of inflation does college tuition fall under? cost push inflation or demand pull inflation. explain.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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I would argue that the increase in college tuition is an example of cost-push inflation.

Many people argue that this rise comes as colleges put more "bells and whistles" into their campuses.  They say that colleges are creating more things like rock climbing walls as ways to lure students who are mostly interested in having fun than in studying and won't go to colleges without such things.  This would mean that the costs of providing a college education are rising and so must tuition.

The New York Times article below argues that a loss of state government support for colleges is pushing tuition up.  This would also be an example of cost-push because the costs to the colleges have been rising.   These costs must be passed on to the consumers.

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