WorksheetsInflation
Total questions: 12
Worksheet time: 8mins
The rate of inflation is most commonly measured by use of
a price deflator
the GDP deflator
the consumer price index
all of the above
An increase in aggregate demand is likely to lead to
demand-push inflation
cost-push inflation
demand-pull inflation
cost-pull inflation
Consumers may defer consumption when
they face a rising rate of inflation
they face disinflation
the face deflation
they face lower interest rates
Money supply creates inflation only when ...
the money is printed slower than the economy grows.
the money is printed faster than the economy grows.
the money is printed at the same speed than the economy grows.
What are two ways governments/ECB can control inflation?
Monetary Policy, Fiscal Policy
Fiscal Policy, Supply and Demand
Monetary Policy, Supply and Demand
Savers are loser during inflation because
fixed pension or interest income from investments your income will not grow with inflation.
the inflation rate is lower than the interest rate, savings are decreasing in value.
the inflation rate is higher than the interest rate, savings are decreasing in value.
Which of the followings is NOT one of the forms of inflation?
Hyperinflation
Disinflation
Stagflation
Pre-inflation
Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Demand-pull inflation
Cost-push inflation
Demand-push inflation
Cost-pull inflation
When inflation is high the _______________of the euro decreases
Which of the following is not a step in calculating the CPI?
Choose a base year and let it equal 100
Decide what goods to put in the basket
Multiply the simple price index by the weight
Calculate how many people bought the good this year
Which one of the following is not an effect of increased inflation?
Lower standard of living.
Loss of international competitiveness.
Saving is encouraged.
Saving is discouraged.
Which of the following two policies would you recommend to counter high Demand-pull inflation?
Increased Government spending
Decreased Government Spending
Increased interest rates
Decreased Interest rates
