Inflation represents:
(a) fall in price level
(b) increase the value of money
(c) decrease value of money
(d) None
Which is the slowest inflation?
(a) Walking
(b) running
(c) Creeping
(d) moderate
Inflation due to an increase in the price of industrial products is known as:
(a) Pricing power
(b) Sectoral
(c) Profit
(d) None
Cost – push inflation arises due to
(a) Rise in wages
(b) Rise in profit
(c) Rise in the prices of raw materials
(d) All of the above
What is Hyperinflation?
(a) extremely high inflation
(b) extremely low inflation
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Who said inflation is too much money chasing too few goods?
(a) Coulbourn
(b) Keynes
(c) Friedman
(d) Samuelsson
What is the most common indicator of inflation?
(a) The Fisher effect
(b) The Phillips curve
(c) Core inflation Index
(d) Consumer Price Index
The oil price rise is an example of __ inflation
(a) Sectoral
(b) Demand pulled
(c) Development
(d) Pricing power
The rate of inflation for walking is:
(a) between 3 to 10%
(b) below 3 %
(c) More than 10%
(d) More than 3%
‘Stagflation’ is a situation that the economy faces
(a) Inflation
(b) Stagnation
(c) Inflation as well as stagnation
(d) None of the above
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Demand inflation is due to:
(a) cost hike
(b) excess demand
(c) excess cost
(d) All
Among the following, which is not a feature of inflation?
(a) long term process
(b) state of disequilibrium
(c) dynamic in nature
(d) non-monetary phenomenon
Inflation is a situation where
(a) Prices are falling
(b) Value of money is falling
(c) Value of money is rising
(d) All of the above
Cost push inflation can be controlled mainly by
(a) Fiscal policy
(b) Monetary policy
(c) Administrative policy
(d) All
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Deflation means:
(a) falling price level
(b) rise in price level
(c) increase the value of money
In the case of ‘creeping inflation’, prices are rising at
(a) Less than 3% per month
(b) Less than 3% per annum
(c) Around 5% per month
(d) Around 5% per annum
What is Disinflation?
(a) slow decrease in the prices
(b) slow increase in the prices
(c) high increase in the prices
(d) no increase in the prices
Expand PPI
(a) Purchaser Price Index
(b) People Price Index
(c) Producer Price Index
(d) Primary Price Index
The price rise every second is referred as __ inflation
(a) Running
(b) Galloping
(c) Walking
(d) Hyper
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When prices of only a few commodities rise, it is called
(a) Sporadic
(b) suppressed
(c) open
(d) creeping
The term Stagflation was coined by:
(a) Samuelson
(b) Iain Macleod
(b) Keynes
(d) None
Which of the following is / are the easiest way(s) to handle inflation in the economy ?
(A) Increase the money supply in the economy.
(B) Curb the money supply in the economy,
(C) Increase the credit inflow in the economy.
(D) Curb the credit inflow in the economy.
(a) Only (A) and (C)
(b) Only (B) and (D)
(c) Only (A)
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Demand-pull inflation may be caused by:
(a) An increase in costs
(b) A reduction in interest rates
(c) A reduction in government spending
(d) An outward shift in aggregate supply
What is the cause of inflation?
(a) If money supply increases.
(b) If the production rate falls.
(c) If money supply increases and production falls.
(d) Both money supply and production decrease
What is cost-push inflation?
(a) Increasing money supply
(b) Increasing indirect tax
(c) Population increase
(d) expenditure increases unnecessarily
Which of the following is an effect of inflation?
(a) Erosion in purchasing power
(b) Affects the relative price of goods
(c) Increase in inequality of income
(d) All the above
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Inflation:
(a) Always reduces the cost of living
(b) Always reduces the standard of living
(c) Reduces the price of products
(d) Reduces the purchasing power of a currency
What does inflation imply?
(a) Rise in budget deficit
(b) Rise in prices of consumer goods.
(c) rise in money supply.
(d) Rise in general price index
What shows the inverse relationship between inflation and unemployment?
(a) Wage-price spiral
(b) CII
(c) The Phillips curve
(d) cost-push factor
How can inflation be checked temporarily?
(a) Increase in money supply
(b) Decrease in money supply
(c) Increase in wages
(d) Decrease in Tax
Inflation is the state in which __
(a) The value of money decreases
(b) The value of money increases
(c) The value of the money increases first and then decreases
(d) The value of money decreases first and increases later
Which is not a type of inflation?
(a) Demand-pull
(b) Growth-push
(c) Cost-push
(d) Core
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Because of trade (and imports), inflation
(a) increases
(b) decreases
(c) moderates
(d) disappears
