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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2025 · Q241 Mark

Which changes are likely to lead to the biggest increase in inflation in country X?

A5% decrease; 5% decrease
B5% decrease; 5% increase
C5% increase; 5% decrease
D5% increase; 5% increase

✓ Correct answer

C: 5% increase; 5% decrease

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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, May/June 2025 Paper 1 Variant 2, question 24.

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