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 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.
Answer:
(d)
Core Books/NCERT
It a direct application based question. 1st statement is correct as increase in money supply will cause inflation. 2nd and 3rd statement are obviously correct as they represent supply and demand side of products