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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2009 · Q231 Mark

What may cause cost-push inflation?

Aan appreciation of the exchange rate
Bhigher level of consumption
Can increase in labour productivity
Dan increase in trade union power

✓ Correct answer

D: an increase in trade union power

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2009 Paper 1 Variant 2, question 23.

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