Question

Inflation is not caused by slow growth in __________.

• A. agricultural output
• B. industrial output
• C. population
• D. costly imports

Answer 1

Answer: (C)

population

Population growth is not a major cause of inflation.

A population that is growing can lead to increased demand and thus increased prices, but the larger population can also increase supply of things like labour as well. Hence there is no major influence of population on inflation.