JAMB - Economics (2020 - No. 18)
Which of the following is likely to be inflationary
taxes increase
increase in unemployment
budget surplus
wages increase
Wyjaśnienie
Increment in wages and salaries will lead to inflation. This happens when business owners raise the minimum wage, leading to a corresponding rise in the prices of their goods or services, thereby causing inflation.
Remember inflation happens when there is excess money in the economy, thereby causing a general rise in prices.