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  9. Q35

APSC CCE 2013 · Question 35 of 99

A rise in the general price level may be caused by

Economy

  1. AA decrease in the aggregate level of output
  2. BAn increase in the effective demand
  3. CAn increase in the supply of money
  4. D(A) and (C) onlyCorrect

Answer: D. (A) and (C) only

Explanation

Falling output and rising money supply both push prices up.

Source: APSC CCE 2013 Prelims GS paper (solved paper, scribd doc 478905986)

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