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Quiz: Causes of Inflation - Money Supply Growth

Pearson Edexcel Level 3 Advanced GCE in Economics A (9EC0)

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Building on what you've learned about inflation, let's test your understanding of how money supply growth can cause inflation!

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What does 'money supply growth' refer to?

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Which of the following are potential effects of too much money supply growth? (Select all that apply)

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Money supply growth leads to inflation when there is too much money chasing too few {{blank0}}.

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Match the items on the left with their correct pairs on the right

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If the money supply increases by 10% and output remains unchanged, what happens to the price level?

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What is a key reason why excessive money supply growth leads to inflation?

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Which policies could help control inflation caused by money supply growth? (Select all that apply)

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Match the items on the left with their correct pairs on the right

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The {{blank0}} Curve shows the relationship between inflation and unemployment under certain conditions.

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What happens to the purchasing power of money during inflation?

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