Inflation Quiz

Which of the following is NOT a characteristic of the Consumer Price Index (CPI)?

• It relates to the cost of living

• The basket consists of consumer goods and services

• Prices of imported goods are shown explicitly

• Prices include VAT

What is the inflation target range set by the Minister of Finance in South Africa?

• Between 2% and 5%

• Between 3% and 6%

• Between 4% and 6%

• Between 5% and 8%

Which of the following is a characteristic of demand-pull inflation?

• Aggregate supply rises more than aggregate demand

• It's primarily caused by an increase in production costs

• It occurs when aggregate demand outpaces aggregate supply

• It's mainly driven by increases in labour costs

What is stagflation?

• High growth, low unemployment, and low inflation

• Low growth, high unemployment, and high inflation

• High growth, high unemployment, and low inflation

• Low growth, low unemployment, and high inflation

Which of the following is NOT a fiscal measure to combat inflation?

• Increasing direct taxation

• Cutting back on government expenditure

• Imposing surcharges on imported goods

• Adjusting the repo rate

What does CPI stand for in the context of measuring inflation?

• Consumer Price Index

• Cost Production Index

• Central Price Indicator

• Consumer Purchasing Indicator

Which type of inflation occurs when the aggregate demand for goods and services exceeds the aggregate supply?

• Cost-push inflation

• Demand-pull inflation

• Hyperinflation

• Stagflation

Which of the following is NOT included in the calculation of core inflation?

• Clothing prices

• Housing costs

• Fresh food prices

• Education costs

Which index excludes VAT in its calculations?

• Consumer Price Index (CPI)

• Producer Price Index (PPI)

• GDP Deflator

• Retail Price Index

At what inflation rate is it considered hyperinflation?

• Above 10%

• Above 25%

• Above 50%

• Above 100%