Economics

High inflation levels in the economy leads to _______ in the supply of money

• Increase

• Decrease

• No change

• None of the above

Which of the following concepts is the opposite of inflation?

• Deflation

• Stagflation

• Recession

• None of the above

A government resorts to __________ to reduce inflation.

• Cuts in government spending

• Increase in government expenditure

• Reduction in repo rate

• None of the above

If too much money is chasing too few goods, the resulting inflation is known as __________.

• Stagflation

• Cost-push inflation

• Demand-pull inflation

• None of the above

Inflation is measured by _______.

• Consumer price index

• Wholesale price index

• Marshall’s index

• None of the above

When inflation is a result of an increase in the price of factors of production, the result is ________.

• Demand-pull inflation

• Stagflation

• Cost-push inflation

• None of the above

The combination of stagnation and inflation is known as _____.

• Unemployment

• Demand-pull inflation

• Cost-push inflation

• Stagflation

When the central government reduces the value of the domestic currency in terms of foreign currency, this phenomenon is called ______.

• Appreciation

• Depreciation

• Devaluation

• None of the above

In the context of inflation control, what does one mean when they say sterilisation of foreign inflow?

• Withdrawing an equivalent local currency to maintain the desired rate of exchange

• Complying with the regulations for import and export

• Filtering of the black money within an economy

• None of the above

The Consumer Price Index helps to measure the degree to which ___________.

• Consumer prices have risen relative to the wage level in the economy

• Distribution of income between two different sets of income recipients during different periods

• Distribution of income between two different sets of income recipients at the same point in time

• None of the above