{"id":91121,"date":"2025-06-01T10:47:17","date_gmt":"2025-06-01T10:47:17","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91121"},"modified":"2025-06-01T10:47:17","modified_gmt":"2025-06-01T10:47:17","slug":"a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/","title":{"rendered":"A rise in general level of prices may be caused by\n  1. an increase in"},"content":{"rendered":"<p>A rise in general level of prices may be caused by<\/p>\n<ul>\n<li>1. an increase in the money supply<\/li>\n<li>2. a decrease in the aggregate level of output<\/li>\n<li>3. an increase in the effective demand<\/li>\n<\/ul>\n<p>Select the correct answer using the codes given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;1 and 2 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2013<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2013.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2013\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nAll three factors listed can cause a rise in the general level of prices (inflation).<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n1. An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation.<br \/>\n2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation.<br \/>\n3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand-pull inflation.<br \/>\n<\/section>\n<section id=\"pyq-additional_information\">\nInflation is a complex phenomenon influenced by various factors. These three points represent fundamental drivers: monetary factors (money supply), supply-side factors (output level), and demand-side factors (aggregate demand). Often, inflation is a result of a combination of these factors.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>A rise in 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. [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;1 and 2 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"A rise in general level of prices may be caused by\n  1. an increase in\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/#more-91121\">Detailed Solution<span class=\"screen-reader-text\">A rise in general level of prices may be caused by<br \/>\n  1. an increase in<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1467,1120,1190],"class_list":["post-91121","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1467","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A rise in general level of prices may be caused by  1. an increase in<\/title>\n<meta name=\"description\" content=\"All three factors listed can cause a rise in the general level of prices (inflation). 1. An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation. 2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation. 3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand-pull inflation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A rise in general level of prices may be caused by  1. an increase in\" \/>\n<meta property=\"og:description\" content=\"All three factors listed can cause a rise in the general level of prices (inflation). 1. An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation. 2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation. 3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand-pull inflation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:47:17+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A rise in general level of prices may be caused by  1. an increase in","description":"All three factors listed can cause a rise in the general level of prices (inflation). 1. An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation. 2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation. 3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand-pull inflation.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/","og_locale":"en_US","og_type":"article","og_title":"A rise in general level of prices may be caused by  1. an increase in","og_description":"All three factors listed can cause a rise in the general level of prices (inflation). 1. An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation. 2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation. 3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand-pull inflation.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:47:17+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/","name":"A rise in general level of prices may be caused by 1. an increase in","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:47:17+00:00","dateModified":"2025-06-01T10:47:17+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"All three factors listed can cause a rise in the general level of prices (inflation). 1. An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation. 2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation. 3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand-pull inflation.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-rise-in-general-level-of-prices-may-be-caused-by-1-an-increase-in\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"A rise in general level of prices may be caused by 1. an increase in"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91121"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91121\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}