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Wednesday, 08 April 2026
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Which of the following is likely to be inflationary

Which of the following is likely to be inflationary
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Taxes increase
  • B Increase in unemployment
  • C Budget surplus
  • D Wages increase
Correct Answer: Option D
Explanation:
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.

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