Inflation

Inflation

12th Grade

15 Qs

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Inflation

Inflation

Assessment

Quiz

Social Studies

12th Grade

Practice Problem

Medium

Created by

Vincent Horstink

Used 1+ times

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15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

Identify which of the following situations best explains a cause of cost-push inflation.

A decrease in interest rates

An increase in production costs

A decrease in consumption spending

An increase in private investment

2.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

Identify which of the following situations best explains a cause of demand-pull inflation.

A decrease in the labour force

A decrease in consumption spending

An increase in interest rates

An increase in government spending

3.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

What do we call it when the rate of inflation decreases?

Disinflation

Deflation

Hyperinflation

Galloping inflation

4.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

Media Image

What type of inflation is represented here? (Please disregard the fact that LRAS is not shown)

Demand-pull inflation

Cost-push inflation

Hyperinflation

Deflation

5.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

(HL) The weighted price index of year 1 was 104.3, and that of year 2 was 112.6. What was the rate of inflation between the two years?

8.3%

7.37%

-7.37%

7.95%

6.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

Which of the following is not a likely effect on a country if it is experiencing a high level of inflation?

Increased real value of savings

Demand for higher wages

Decreased investments

Higher interest rates

7.

FILL IN THE BLANK QUESTION

1 min • 5 pts

_______ inflation happens when SRAS falls below AD.

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