Quiz about Inflation, deflation and stagflation (Macroeconomics Concepts)
Question: Inflation represents:
(a) fall in price level
(b) increase the value of money
(c) decrease value of money
(d) None
Question: Which is the slowest inflation?
(a) Walking inflation
(b) running inflation
(c) Creeping inflation
(d) moderate inflation
Question: Inflation due to an increase in the price of industrial products is known as:
(a) Pricing power inflation
(c) Sectoral inflation
(b) Profit inflation
(d) None
Question: 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
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Question: Who said inflation is too much money chasing too few goods?
(a) Coulbourn
(b) Keynes
(c) Friedman
(d) Samuelsson
Question: The oil price rise is an example of:
(a) Sectoral inflation
(b) Demand pulled inflation
(b) Development inflation
(d) Pricing power inflation
Question: The rate of inflation for walking is:
(a) between 3 to 10%
(b) below 3 %
(c) More than 10%
(d) More than 3%
Question: ‘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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Question: Demand inflation is due to:
(a) cost hike
(b) excess demand
(b) excess cost
(d) All
Question: 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
Question: 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
Question: Cost push inflation can be controlled mainly by
(a) Fiscal policy
(b) Monetary policy
(b) Administrative policy
(d) All
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Question: Deflation means:
(a) falling price level
(b) rise in price level
(c) increase the value of money
(d) None
Question: 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
Question: The term Stagflation was coined by:
(a) Keynes
(c) Samuelsson
(b) Friedman
(d) Brahmananda
Question: The price rise every second is referred as
(a) Running inflation
(b) Galloping inflation
(c) Walking inflation
(d) Hyper inflation
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Question: When prices of only a few commodities rise
(a) Sporadic Inflation
(b) suppressed inflation
(c) open inflation
(d) creeping inflation
Question: Inflation due to hording
(a) Credit inflation
(b) Scarcity inflation
(c) Profit inflation
(d) None
Question: The term Stagflation was coined by:
(a) Samuelson
(b) Iain Macleod
(b) Keynes
(d) None
Question: 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)
(d) None of these
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Question: 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
Question: 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
Question: What is cost-push inflation?
(a) Increasing money supply
(b) Increasing indirect tax
(c) Population increase
(d) expenditure increases unnecessarily
Question: 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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Question: 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
Question: 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
Question: How can inflation be checked temporarily?
(a) Increase in money supply
(b) Decrease in money supply
(c) Increase in wages
(d) Decrease in Tax
Question: 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
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Question: Because of trade (and imports), inflation
(a) increases
(b) decreases
(c) moderates
(d) disappears
