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Inflation And Deflation Quiz 9 (30 MCQs)

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1. What is demand-pull inflation?
2. An economy is experiencing a period of deflation. What must be happening?
3. What is the challenge of inflation when it comes to long term saving?
4. This measurement is criticized for overstating inflation because it uses a fixed basket of goods.
5. Which cause of inflation occurs when prices rise in the economy due to an increase in the costs of the factors of production?
6. Which of the following must happen as a result of inflation?
7. The business closures and consumer anxiety caused by Covid19 is likely have what kind of effect on the economy?
8. What are the effects of inflation on fixed-income earners?
9. True or false? An expectation of increasing deflation is likely to slow down household consumption.
10. What is the main problem with deflation?
11. This occurred in Germany in the 1920s and in the Philippines during Japanese occupation when the price is continuously increasing and large amount of money were needed to buy a very minimal amount of commodities
12. Combination of relatively high inflation and a very weak economy. US experienced it during the 1973-75 & '80 recessions.
13. What happens to investment during inflation?
14. If workers do not believe that policymakers are serious about fighting inflation, they are most likely to push for higher wages, which will shift the aggregate ..... curve ..... and lead to unemployment or inflation or both.
15. The producer price index (PPI):
16. When the general level of prices rises, the economy is experiencing
17. What is the biggest problem with this statement?"I will be getting a pension of $ 1500 a month. This is enough to cover my expenses now, so I will be Ok for the rest of my life"
18. In India ..... is considered as the appropriate indicator of Inflation
19. Which of the following explains the relations between the average price of aggregate supply and the quantity demanded?
20. Which is the following is included in GDP?
21. "The ..... is often used to adjust consumers' income payments (for example, Social Security), to adjust income eligibility levels for government assistance, and to automatically provide cost-of-living wage adjustments to millions of American workers. As a result of statutory action, the ..... affects the income of millions of Americans. Over 50 million Social Security beneficiaries, and military and Federal Civil Service retirees, have cost-of-living adjustments tied to the ..... " (BLS).
22. Which is an effect of inflation on the government?
23. If MV = PQ, then V =?
24. Business spending on physical capital, new homes, and inventories is counted in which component of GDP?
25. If the CPI rises from 250 to 275 in a given year, the rate of inflations is:
26. Who did President Ebert select as a new Chancellor in 1923 to solve the problem of the hyper-inflation?
27. The group of goods and services selected and used to measure inflation is referred to as a
28. Which of the following is not a step in calculating the CPI?
29. Which of the following interest rates is expressed in terms of current dollars as the percentage of the amount loaned?
30. What happens to investment during deflation?
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