ECS2602 ASSESSMENT 1 SEMESTER 1 2024 SOLUTIONS WITH DETAILED CALCULATIONS
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University of South Africa (Unisa)
Economics IB (ECS1601)
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Which one of the following will not be appropriate in an attempt to combat demand-pull
inflation?
a.
An increase in interest rates
b.
An increase in taxes
c.
A decrease in government spending
d.
Measures to decrease the productivity of labour
***********************************************************************
In the case of demand-pull inflation, an increase in the general price level is
accompanied by … in total production. In the case of cost-push inflation, an increase in
the general price level is accompanied by…in total production.
a.
a decrease; an increase
b.
a decrease; a decrease
c.
an increase; an increase
d.
an increase; a decrease
******************************************************************
Which one of the following is an example of inflation?
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