GyanGramQuestion
A rise in the general level of prices may be caused by:
1. an increase in the money supply
2. a decrease in the aggregate level of output
3. an increase in the effective demand
Select the correct answer using the codes given below.
PRELIMS 2013 · INDIAN ECONOMY
A rise in the general level of prices may be caused by: 1. an increase in the money suppl…
Attempt this previous-year question. The correct option stays hidden until you choose.
Pick an option to check yourself.
• Correct Answer: D
• Inflation is caused by increased money supply (demand-pull), decreased aggregate output (cost-push), and higher effective demand.
• All three are recognized drivers of a general price rise.
Keep going in GyanGram.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.