Higher fiscal deficit to GDP ratio would necessarily cause inflation if the economy is under:
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2 marksMacroeconomicsInflation, unemployment and the Phillips curveCauses and types of inflationModerateabout 1 min
UGC-NET 2023 Question 37: Inflation, unemployment and the Phillips curve
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Inflation, unemployment and the Phillips curve has come up 106 times in 7 exams since 2006.
What this question tests
This question is on Causes and types of inflation, part of Inflation, unemployment and the Phillips curve in Macroeconomics.
What drives inflation: demand, costs, structure and money creation.
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