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JAMB Economics 1990 Question 30

Question 30

Money and Inflation

Which of the following is likely to be inflationary?

  1. A.Tax increase
  2. B.Increase in unemployment
  3. C.Budget surplus
  4. D.Wages increase
Show the answer and explanation

Answer: D (Wages increase)

Explanation

Higher wages raise costs and spending power, pushing prices up (cost-push and demand-pull). The other options reduce spending.