Inflation and GDP Quiz

Which of the following changes will have an effect on inflation that is different to the other three?

• Decreased oil prices

• Decreased interest rates

• A depreciation of the Australian dollar

• Increased disposable income

Which of the following will have an effect on inflation that is different to the other three?

• Higher oil prices

• A depreciation of the AUD

• Lower labour costs

• Lower interest rates

Which of the following events will most likely contribute to an increase in real GDP at the same time as a decrease in the rate of inflation?

• weaker rates of economic growth in China

• an improvement in productivity growth rates

• an appreciation of the Australian dollar (AUD)

• relatively high levels of consumer confidence

Which of the following reduces cost push but increases demand pull inflation?

• Lower business confidence

• A higher exchange rate

• A lower TWI

• Lower interest rates

Which of the following reduces both cost and demand inflation?

• A higher Australian dollar

• Slower wage growth

• Weaker productivity growth

• Lower consumer confidence

The rate of inflation is likely to fall if:

• There is a depreciation of the Australian dollar

• There is a decrease in consumer confidence

• Tariffs are increased

• There is a fall in prodcutivity

Which of the following events will not cause the inflation rate in Australia to fall?

• An increase in interest rates

• Falling consumer confidence

• An increase in productivity growth

• A shortage of oil

If wages are increased by 4% when productivity increases by 2%, this will:

• stimulate demand inflation

• stimulate cost inflation

• stimulate both cost and demand inflation

• not have any effect on inflation

Which of the following would trigger cost inflationary pressure?

• increases in consumption expenditure

• A reduction in personal income taxes

• higher indirect taxes on consumer items

• lower import prices

Cost inflation typically occurs following an increase in

• prices of factors of production

• the value of the $A on world currency markets

• the level of aggregate demand

• Business Investment