O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2015 · Q231 Mark
When would an increase in aggregate demand be least likely to result in inflation in an economy?
Awhen it is the result of an increase in government expenditure
Bwhen it is the result of an increase in expenditure on consumer goods
Cwhen there are substantial unemployed resources in the economy
Dwhen there is a substantial increase in expenditure on imports
✓ Correct answer
C: when there are substantial unemployed resources in the economy
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government and the macroeconomy and see which topics are most likely to come up next.
Sign up free →