O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2019 · Q161 Mark
What is most likely to cause a rise in the rate of inflation in an economy?
Afall in import prices
Bfall in wage rates
Crise in the level of government spending
Drise in the level of unemployment
✓ Correct answer
C: rise in the level of government spending
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