Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

Which alterations are most likely to produce the greatest increase in inflation in country X?

  • Ademand for goods and services in country X: $5\%$ decrease; supply of goods and services in country X: $5\%$ decrease
  • Bdemand for goods and services in country X: $5\%$ decrease; supply of goods and services in country X: $5\%$ increase
  • Cdemand for goods and services in country X: $5\%$ increase; supply of goods and services in country X: $5\%$ decrease
  • Ddemand for goods and services in country X: $5\%$ increase; supply of goods and services in country X: $5\%$ increase

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