Economics (AS & A Level) · Feb / March 2023 · Paper 12 · Question 20

In an economy, wages and prices are both rising but wages are rising faster. Which features are likely to exist in this economy?

1. Acost-push inflation: no; rise in real incomes: no
2. Bcost-push inflation: no; rise in real incomes: yes
3. Ccost-push inflation: yes; rise in real incomes: no
4. Dcost-push inflation: yes; rise in real incomes: yes

As printed in the paper