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Economics · May / June 2025 · Paper 12 · Question 21

2281Inflation

An economy that is fully employed is forecast to have an increase in total demand. What is most likely to increase?

  1. Athe rate of absolute poverty
  2. Bthe government budget deficit
  3. Cthe level of unemployment
  4. Dthe rate of inflation

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Correct answer: D. the rate of inflation

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