WAEC Economics 2015 Objective — Question 24
Question 24 of 50 from the West African Examinations Council (WAEC) Economics 2015 Objective paper, with the correct answer and a full explanation.
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Inflation may occur if there is a(n)
- A. excess supply over demand
- B. increase in productivity
- C. excessive demand with limited supplyCorrect
- D. increased government spending in a depressed economy
Explanation
Demand-pull inflation occurs when there is excessive demand chasing a limited supply of goods, driving prices up.
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