ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Demand-led
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Cost-push (supply)
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Government driven
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None of the above
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Detailed explanation-1: -Expert-Verified Answer. (d)Increase in demand for money is not a cause of inflation.
Detailed explanation-2: -The correct answer is Increase in money supply and Fall in production. Inflation is a caused when there is an increase in money supply and fall in production. Also occurs due to rising prices of goods and services in an economy.
Detailed explanation-3: -The 5 causes of inflation are increase in wages, increase in the price of raw materials, increase in taxes, decline in productivity, increase in money supply.
Detailed explanation-4: -In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It is caused when increase in money supply and production falls.