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Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 19

9708Price stability

Which combination is likely to result in cost−push inflation?

  1. Aexchange rate falling; output per worker per hour falling
  2. Bexchange rate falling; output per worker per hour rising
  3. Cexchange rate rising; output per worker per hour falling
  4. Dexchange rate rising; output per worker per hour rising

As printed in the paper

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Correct answer: A. exchange rate falling; output per worker per hour falling

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