Which of the following are said to increase the general price level in an economy?

1. Failed monsoon

2. Increase in population

3. Introduction of Universal Basic Income

4. Job losses

Select the correct answer using the code given below:

• The general price level increase is said to occur because of two factors –

o Driven by demand, called as demand-push inflation

o Driven by supply constraints, called cost-pull inflation

• Failed monsoon will affect the agricultural supply chain and, thus, can be inflationary.

• Increase in population is said to increase the demand and, thus, can be inflationary.

• Introduction of Universal Basic Income will increase the demand and, thus, can be inflationary.

• Job loss leads to contraction in demand and, thus, is not inflationary.