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WAEC Economics 2013 Objective — Question 33

Question 33 of 50 from the West African Examinations Council (WAEC) Economics 2013 Objective paper, with the correct answer and a full explanation.

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Demand pull inflation can aptly be described as

  • A. inflation induced by rising costs of production
  • B. reduction in government expenditure
  • C. persistent rise in prices due to increase in expenditureCorrect
  • D. massive importation of goods from a country with hyperinflation

Explanation

Demand-pull inflation is caused by increased (aggregate) expenditure/demand in the economy.

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