Search SchoolNGR

Tuesday, 05 May 2026
Register . Login

Inflation may occur if ____________

Inflation may occur if ____________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Rate of productivity is higher than the wage rate
  • B Prices fluctuate during a particular season of the year
  • C Wage increase is granted without an increase in productivity
  • D The government embarks on restrictive monetary policies
Correct Answer: Option C
Explanation:
If salaries and wages are increased without a corresponding increase in production, it will lead to inflation. This is so because they will be excess money chasing few the goods that are available in the market.

Share question on: