WorksheetsInflation
Total questions: 20
Worksheet time: 10mins
Most economists believe that some inflation will occur when the economy is growing.
True
False
Inflation can best be defined as...
A general increase in prices.
An increase in prices of key items purchased by consumers.
The increase in the value of fiat money
The printing of too much paper money.
Two causes of inflation are:
Demand-pull
Cost-push
Command-lift
Push-pull
_________ is a decrease in the rate of inflation.
Hyperinflation
Disinflation
Deflation
Stagflation
__________ refers to a decrease in price level.
Hyperinflation
Disinflaation
Deflation
Stagflation
Which of the following is NOT one of the components of Gross Domestic Product (GDP)?
Consumption
Producer Price Index
Government spending
Investment
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
Inflation is most likely to occur during which phase of the business cycle
Expansion
Contraction
An appropriate policy to overcome demand pull inflation is by
reducing taxes
a tight monetary policy
an easy monetary policy
increasing government spending
Inflation that causes the supply curve to shift to the left and a reduction in the output is known as
demand pull-inflation
cost-push inflation
fully-anticipated inflation
hyperinflation
To close an inflationary gap, the government could
run budget deficits
decrease income taxes
increase development expenditure
run budget surpluses
