Economics · Inflation
Consider the following statements about Inflation and its causes: 1. Demand-Pull Inflation is always caused exclusively by an excess of Money Supply in the economy relative to the available output. 2. A wage-price spiral, where workers demand higher wages and firms raise prices in response, is a classic mechanism for Cost-Push Inflation. 3. Hyperinflation often leads to a complete collapse of Money's function as a Store of Value and a Medium of Exchange. Which of the statements given above is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 11, 2, and 3
- 21 and 3 only
- 32 and 3 only✓
- 41 and 2 only
Correct answer
2 and 3 only
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Inflation MCQs →Want more practice questions on Inflation?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Inflation