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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2022 · Q221 Mark

What is most likely to cause inflation?

Areduction in exports
Breduction in government spending
Can increase in the rate of interest
Dan increase in trade union power

✓ Correct answer

D: an increase in trade union power

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Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2022 Paper 1 Variant 2, question 22.

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