
Inflation, Deflation, Disinflation
Authored by Muaziz Latif
Business
11th Grade
Inflation, Deflation, Disinflation covered
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7 questions
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1.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
Which policy mix is most likely to be effective in the short run for reducing inflation in a closed economy? D
decreasing the budget surplus (fiscal), increasing the interest rate (monetary)
decreasing the budget surplus (fiscal), increasing the money supply (monetary)
increasing the budget surplus (fiscal), increasing the interest rate (monetary)
increasing the budget surplus (fiscal), increasing the money supply (monetary)
Tags
Inflation, Deflation, Disinflation
2.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
A
B
C
D
Tags
Aggregate Demand & Aggregate Supply
3.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
A government is faced with rising inflation. It wishes to reduce inflationary pressure while avoiding a fall in output.
Which action is most likely to meet its needs?
an increase in laws to promote competition
an increase in taxation
an increase in the budget surplus
an increase in the exchange rate
Tags
Inflation, Deflation, Disinflation
4.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
The diagram shows aggregate demand and aggregate supply curves for an economy.
What would cause a change in the aggregate demand from AD to AD1?
decrease in the budget surplus
consumption of domestic instead of foreign goods
government campaigns to encourage household savings
investment in knowledge-based enterprises
Tags
Aggregate Demand & Aggregate Supply
5.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
Which effect of inflation is described as redistributive?
the improvement in the terms of trade
the increased reluctance of people to hold money
the inconvenience of frequently changing prices
the loss of purchasing power of people on fixed incomes
Tags
Inflation, Deflation, Disinflation
6.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
An economy is experiencing a period of deflation.
What must be happening?
The average price level is falling.
The output of the economy is falling.
The rate of inflation is falling.
The real value of money is falling.
Tags
Inflation, Deflation, Disinflation
7.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
How is a rate of inflation that is lower than that expected likely to affect lenders and borrowers in an economy?
A
B
C
D
Tags
Inflation, Deflation, Disinflation
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