Day: July 4, 2025

Accounting Multiple Choice Question – 4 July 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which of the following would lead to demand-pull inflation?

Select ONE answer:

  1. Rising import prices
  2. Increase in wages
  3. Increases in indirect taxation
  4. High consumer expenditure such that aggregate demand exceeds aggregate supply

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > Aggregate demand exceeding aggregate supply is an example of demand-pull inflation.

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