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Economics · May / June 2019 · Paper 11 · Question 22

2281Inflation

A country is experiencing a period of full employment. What is most likely to lead to an increase in demand-pull inflation?

  1. Aan increase in government spending
  2. Ban increase in imports
  3. Can increase in income tax rates
  4. Dan increase in sales tax

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Correct answer: A. an increase in government spending

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