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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2021 · Q171 Mark

What is a cause of demand-pull inflation?

Asurplus of skilled labour
Bhigher government expenditure
Chigher tax rates
Dlower net exports

✓ Correct answer

B: higher government expenditure

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 17.

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