WorksheetsInflation
Total questions: 5
Worksheet time: 2mins
Inflation
lowers interest rates.
reduces the export power of the dollar.
reduces the purchasing power of the dollar.
increases the purchasing power of the dollar.
Demand-pull inflation occurs when
prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output.
there is a negative GDP gap.
there is a negative price gap.there are increases in per-unit costs of production.
there is a negative price gap.there are increases in per-unit costs of production.
The losers from inflation are those with
significant debt.
fixed incomes in nominal terms.
no savings.
incomes rising as fast as the rate of inflation.
Cost-push inflation occurs in the presence of __________.
excess demand for goods and services
a trade deficit
excess inventory
rising per-unit production costs
What are the correct measure to reduce inflation
Reduce tax rate
increase government spending
increase interest rate
reduce discount rate
