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WAEC Economics 2013 Question 33

Question 33

Money and Inflation

Demand pull inflation can aptly be described as

  1. A.inflation induced by rising costs of production.
  2. B.reduction in government expenditure.
  3. C.persistent rise in prices due to increase in expenditure.
  4. D.massive importation of goods from a country with hyperinflation.
Show the answer and explanation

Answer: C (persistent rise in prices due to increase in expenditure.)

Explanation

Demand-pull inflation comes from too much spending chasing too few goods.