MCQOPTIONS
Saved Bookmarks
| 1. |
It has been generally viewed that when an economy grows beyond its potential growth rate, it causes inflation. How does growing faster than the potential rate cause inflation? |
| A. | Fast growth causes more productivity which leads to higher supply and cost put inflation |
| B. | Fast growth causes quick resources utilization to fulfill the higher demand |
| C. | Fast growth cause more employment opportunities which leads to rise in prices. |
| D. | None of these. |
| Answer» C. Fast growth cause more employment opportunities which leads to rise in prices. | |