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Economics · May / June 2019 · Paper 12 · Question 16

2281Inflation

What is most likely to cause a rise in the rate of inflation in an economy?

  1. Aa fall in import prices
  2. Ba fall in wage rates
  3. Ca rise in the level of government spending
  4. Da rise in the level of unemployment

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Correct answer: C. a rise in the level of government spending

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