UPSC Prelims 2021 · GS Paper 1 · Q82
Economy
Medium · Demand-pull inflation
Which of the following can lead to demand-pull inflation in an economy?
1. Expansionary monetary policy that increases the money supply
2. Fiscal stimulus that raises government expenditure
3. Wage indexation that automatically adjusts wages to inflation
4. A general rise in the purchasing power of consumers
Select the correct answer using the code given below.