Meaning And Types of Inflation - SS2 Economics Past Questions and Answers - page 1
What is inflation?
An increase in the value of money
A decrease in the value of money
No change in the value of money
Which of the following is a type of inflation?
Economic slowdown
Budget deficit
Demand-pull inflation
What causes cost-push inflation?
Increase in demand
Increase in supply
Increase in production costs
Which best simplifies hyperinflation?
A mild inflation
A high rate of inflation
No change in inflation
What is built-in inflation?
A type of inflation caused by a shortage of goods
A type of inflation caused by an increase in production costs
A self-caused cycle of price increases caused by expectations of inflation
How does inflation affect the purchasing power of money?
When inflation occurs, the value of money decreases and the cost of goods and services goes up.
Name one factor that can cause cost-push inflation.
An increase in production costs can cause cost-push inflation.