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Economics · Oct / Nov 2021 · Paper 13 · Question 17

2281Inflation

Why might measures to reduce unemployment also make inflation rise?

  1. AThey encourage cheap imports.
  2. BThey increase demand.
  3. CThey reduce firms’ costs.
  4. DThey require wages to fall.

As printed in the paper

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Correct answer: B. They increase demand.

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