SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    A rise in 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

    A)  Only 1 

    B)  1 and 2

    C)  2 and 3

    D)  All of these

    Correct Answer: D

    Solution :

    [d] Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.

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