pyq/2013/prelims/82

A rise in the general level of prices may be caused by:

1. an increase in the money supply

2. a decrease in the aggregate level of output

3. an increase in the effective demand

Select the correct answer using the codes given below.

(A) 1 only

(B) 1 and 2 only

(C) 2 and 3 only

(D) 1, 2 and 3