Question

Which of the following is one of the main causes of inflation?
A.
Wages drop so workers have to spend a higher percentage of
income on necessities.
O

B. Rising unemployment cuts into national income.
O

C. Consumers demand goods faster than they can be supplied.


D. Demand drops and forces producers to charge more to meet their
costs.

Answer 1

Answer:

c.  consumers  demand goods faster then they can be supplied

Explanation:

Answer 2

Inflation is a change in price over a period of time. Inflation means that a few things are chasing a lot of money. So the correct option is C.

What is Inflation and how does affect it?

When there is a lot of demand in the market and supply is not fulfilled it creates inflation. When inflation increase that you have to pay more and more for the goods and services vice-versa.  

There are mainly three types of inflation which are cost-push inflation, demand-pull inflation, and built-in inflation. The low-income group hurts most when the inflation rate increases.

Therefore the correct option is C.

Learn more about Inflation here:

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