This quiz works best with JavaScript enabled. Home > Macroeconomics > Inflation > Inflation – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inflation Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The total mark up price of cupcakes that Jill earned is Php500. How much is the selling price of each cupcake if the quantity or the total number of products is 50? A) 5. B) 10. C) 15. D) 20. Show Answer Correct Answer: B) 10. 2. ..... is when prices rise and are pushed up because the cost of resources and labor increases A) Deflation. B) Demand-pull Inflation. C) Cost-push Inflation. D) Inflation. Show Answer Correct Answer: C) Cost-push Inflation. 3. An attempt to once again increase the money supply and aggregate demand A) Inflationary Measures. B) Reflationary Meaures. C) Deflationary Measures. D) Fiscal Measures. Show Answer Correct Answer: B) Reflationary Meaures. 4. As at October 2021 what was the CPI rate of inflation? A) 3.1%. B) 4%. C) 4.2%. D) 3.2%. Show Answer Correct Answer: C) 4.2%. 5. Argentina has gone through many crises but it is currently undergoing a harsh inflation A) An increase in prices. B) An increase in prices and wages. C) A decrease in wages. D) An increase in wages. Show Answer Correct Answer: A) An increase in prices. 6. What does (X-M) mean in the GDP formula? A) Net exports. B) Net imports. C) Net x-rays. D) None of above. Show Answer Correct Answer: A) Net exports. 7. ..... is a measure of price change in a selected market basket of goods and services such as gasoline, food, clothing, and automobiles A) Consumer Price Index. B) Market Basket. C) Cost-push Inflation. D) Demand-pull Inflation. Show Answer Correct Answer: A) Consumer Price Index. 8. An increase in the supply of money in the economy would most likely cause: A) Inflation. B) Deflation. C) Stagflation. D) Everyone to become millionaires. Show Answer Correct Answer: A) Inflation. 9. To calculate the future cost of a product or service due to inflation, people need to know everything except the A) Inflation rate. B) Current cost of the product or service. C) Type of product or service. D) Future purchase date. Show Answer Correct Answer: C) Type of product or service. 10. In June, the average U.S. household needed to spend how much more a month than it did last year to pay for the same goods and services? A) $ 25. B) $ 75. C) $ 100. D) $ 500. Show Answer Correct Answer: D) $ 500. 11. What happens to the inflation rate when unemployment goes up? A) Inflation rate rises. B) Inflation rate falls and we have deflation. C) Inflation rate stays the same. D) None of above. Show Answer Correct Answer: B) Inflation rate falls and we have deflation. 12. Which of the following interest rates is expressed in terms of current dollars as the percentage of the amount loaned? A) Simple interest rate. B) Nominal interest rate. C) Real interest rate. D) Compound interest rate. Show Answer Correct Answer: B) Nominal interest rate. 13. You should keep track of your spending because if you spend more money than you have in your bank account it is considered a ..... and usually will cause a fee. A) Balance. B) Withdraw. C) Bankruptcy. D) Overdraw. Show Answer Correct Answer: D) Overdraw. 14. To reduce the rate of deflation, an appropriate policy would be A) Lower interest rates. B) Higher taxes. C) Lower government spending. D) Restrictions on bank lending. Show Answer Correct Answer: A) Lower interest rates. 15. The government is implementing VAT on foreign luxury foods items. This measure would best reduce: A) Cost-push Inflation. B) Demand-pull Inflation. C) Monetary Inflation. D) Imported Inflation. Show Answer Correct Answer: D) Imported Inflation. 16. If the Price of the Market Basket in 2008 is $ 40 and the Price of the Market Basket in the base year is $ 20, what is the CPI for 2008? A) 2. B) 60. C) 80. D) 200. Show Answer Correct Answer: D) 200. 17. The Okun's law states that for every 1% increase in the unemployment, there is a: A) 2% increase in GDP. B) 2% decrease in the GDP. C) 2% increase in the GNP. D) 2% decrease in the GNP. Show Answer Correct Answer: B) 2% decrease in the GDP. 18. In ..... inflation prices rise about 2% annually. A) Creeping. B) Walking. C) Running. D) Hyper. Show Answer Correct Answer: A) Creeping. 19. A general rise in the level of prices over time A) Inflation. B) Inflation rate. C) Hyperinflation. D) Deflation. Show Answer Correct Answer: A) Inflation. 20. If nominal out is $ 100 billion dollars while real output is $ 90 then the GDP deflator is A) Approximately 100. B) 110. C) 111.1. D) -110. Show Answer Correct Answer: C) 111.1. ← PreviousNext →Related QuizzesMacroeconomics QuizzesInflation Quiz 1Inflation Quiz 2Inflation Quiz 3Inflation Quiz 4Inflation Quiz 5Inflation Quiz 6Inflation Quiz 7Inflation Quiz 8Inflation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books