This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Inflation > Inflation – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inflation Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You can represent demand-pull inflation in a diagram through ..... A) An inward shift of AD. B) An inward shift of SRAS. C) An outward shift of SRAS. D) An outward shift of AD. Show Answer Correct Answer: D) An outward shift of AD. 2. Mr. Kimoon wants to sell different styles of cap for this coming summer season. He was able to buy 30 caps from the supplier. He wants to use 65% mark-up. What is the mark-up percentage in this problem/ situation? A) 30 caps. B) 65%. C) Cap. D) Summer season. Show Answer Correct Answer: B) 65%. 3. What is the current inflation rate in Australia A) 1.6%. B) 1.8%. C) 1.4%. D) 2.2%. Show Answer Correct Answer: C) 1.4%. 4. Which of the following types of inflation interferes with a company's ability to plan for the future? A) Expected inflation. B) Unexpected inflation. C) Creeping inflation. D) Galloping inflation. Show Answer Correct Answer: B) Unexpected inflation. 5. What is defined as a rate at which the general price level is increasing A) Deflation. B) Inflation rate. C) Inflation. D) Deflation rate. Show Answer Correct Answer: B) Inflation rate. 6. An economy is experiencing accelerating cost-push inflation. Which group is likely to be least concerned by this? OCT/NOV 2015 12 A) B consumers. B) C creditors. C) A borrowers. D) D exporters. Show Answer Correct Answer: C) A borrowers. 7. Which of the following causes of inflation is often described as "too much money chasing too few goods" ? A) Demand-pull inflation. B) Cost-push inflation. C) Demand-push inflation. D) Cost-pull inflation. Show Answer Correct Answer: A) Demand-pull inflation. 8. What is the consumer price index? A) A measure of prices of housing and rental cost all over the country. B) An index of the cost of living for all U.S. Consumers. C) An index determined by measuring the price of standard goods bought by consumers. D) None of above. Show Answer Correct Answer: C) An index determined by measuring the price of standard goods bought by consumers. 9. This group of people benefit from inflation: A) Workers on fixed incomes. B) Lenders. C) Borrowers. D) Savers. Show Answer Correct Answer: C) Borrowers. 10. Having access to a variety of goods and services and at competitive prices allows the consumer the right to ..... A) Basic needs. B) Choose. C) Redress. D) Be heard. Show Answer Correct Answer: B) Choose. 11. For the country of Mordor the Nominal Gross Domestic product was $ 8, 000 B. After comparing the inflation rate to the year prior the GDP deflator was 125. What was the inflation rate? A) 50%. B) 25%. C) 125%. D) 15%. Show Answer Correct Answer: B) 25%. 12. The rise in the average level of prices expressed as a percentage A) Inflation rate. B) Inflation. C) Hyperinflation. D) Deflation. Show Answer Correct Answer: A) Inflation rate. 13. What is demand pull inflation? A) Rise in price due to a decrease in supply. B) A rise in price level due to an increase in demand. C) A decrease in price due to an increase in supply. D) A decrease in price due to a decrease in supply. Show Answer Correct Answer: B) A rise in price level due to an increase in demand. 14. When there is inflation it affects A) Savers. B) Borrowers. C) People on a fixed income. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. What would be likely to decrease inflation in an economy? OCT/NOV 2007 01 A) B an increase in employment. B) C an increase in labour productivity. C) D an increase in taxes on imports. D) A an increase in consumer spending. Show Answer Correct Answer: B) C an increase in labour productivity. 16. Inflation can be measured by the A) Change in the price of a specific commodity. B) Change in the Customer Price Index. C) Percentage change in the price of a specific commodity. D) Percentage change in the Customer Price Index. Show Answer Correct Answer: D) Percentage change in the Customer Price Index. 17. When getting a loan for a car, the ..... is an additional fee you will have to pay back. A) Inflation. B) Discretionary Expense. C) Interest. D) Fixed Expense. Show Answer Correct Answer: C) Interest. 18. Distinction on ex post and ex ante interest rate incorporates into the Fisher effect: A) All the answers are correct. B) Expectations. C) Ex ante real interest rate. D) Market equilibrium. Show Answer Correct Answer: A) All the answers are correct. 19. Which of the following explains the relations between the average price of aggregate supply and the quantity demanded? A) Aggregate demand. B) Price level. C) Producer price index. D) Consumer price index. Show Answer Correct Answer: A) Aggregate demand. 20. Monetary inflation occurring at a very high rate. A) Hyperinflation. B) Cost-push inflation. C) Demand-pull inflation. D) Consumer. Show Answer Correct Answer: A) Hyperinflation. 21. The government is thinking about freezing the wages of workers. This measure would best reduce: A) Cost-push Inflation. B) Demand-pull Inflation. C) Monetary Inflation. D) Imported Inflation. Show Answer Correct Answer: A) Cost-push Inflation. 22. The amount of money generated by an investment before expenses. A) Real rate. B) Interest rate. C) Nominal rate. D) Investment rate. Show Answer Correct Answer: C) Nominal rate. 23. In the Quantity Equation V=(PxY)/M, V is stand for A) Quantity of output. B) Price level. C) Quantity of money. D) Velocity. Show Answer Correct Answer: D) Velocity. 24. Inflation caused by an increase in consumption would be classified as.. A) Demand pull. B) Demand push. C) Cost push. D) Cost pull. Show Answer Correct Answer: A) Demand pull. 25. Advertisement and product labels provides the consumer with the right to ..... A) Be informed. B) Choose. C) Be heard. D) A fair trial. Show Answer Correct Answer: A) Be informed. 26. What are the two types of inflation A) Supply glut and demand side. B) Demand pull and cost push. C) Supply inflation and demand inflation. D) Demand pull and supply glut. Show Answer Correct Answer: B) Demand pull and cost push. 27. Which of the following is not a form of redress? A) Redundancy. B) Replacement. C) Refund. D) Repair. Show Answer Correct Answer: A) Redundancy. 28. Philippine inflation rate decreased to ..... in February from 4.4% in the previous month of this year. A) 3.8%. B) 4.0%. C) 4.2%. D) 3.9%. Show Answer Correct Answer: A) 3.8%. 29. An increase in aggregate demand may not always lead to demand-pull inflation in A) The long run. B) A monetarist new classical model. C) The Keynesian model. D) The short run. Show Answer Correct Answer: C) The Keynesian model. 30. Consumers may defer consumption when A) The face deflation. B) They face disinflation. C) They face lower interest rates. D) They face a rising rate of inflation. Show Answer Correct Answer: A) The face deflation. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesInflation Quiz 1Inflation Quiz 2Inflation Quiz 3Inflation Quiz 4Inflation Quiz 5Inflation Quiz 7Inflation Quiz 8Inflation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books