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    Question

    Which of the following best describes inflationary

    pressure in an economy? 
    A When the purchasing power of money increases Correct Answer Incorrect Answer
    B When the demand for goods and services exceeds supply Correct Answer Incorrect Answer
    C When prices fall consistently over time Correct Answer Incorrect Answer
    D When unemployment rates rise Correct Answer Incorrect Answer

    Solution

    Inflationary pressure occurs when the demand for goods and services exceeds their supply, leading to rising prices. It typically happens in a growing economy with strong consumer demand.

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