MCQs of Economics – Inflation & Productivity

Inflation can be measured by all of the following except the:

In 1989, the CPI was 124.0 in 1990, it was 130.7 What was the rate of inflation over this period?

Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan?

The “basket” on which the CPI is based is composed of:

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from:

Refer to Figure 24-1 What is the value of the basket in the base year

Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely

If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is

Which of the following statements is correct?

If inflation is 8 percent and the real interest rate is 3 percent then the nominal interest rate must be

Under which of the following conditions would you prefer to be the lender?

Under Which of the following conditions would you prefer to be the borrower

If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected

If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected,

Demand pull inflation may be caused by:

Inflation:

An increase in injections into the economy may lead to:

An increase in aggregate demand is more likely to lead to demand pull inflation if:

An increase in costs will:

The effect of inflation on the price competitiveness of a country’s products may be offset by:

Menu costs in relation to inflation refers to:

In the short run unemployment may fall below the natural rate of unemployment if:

According to the Phillips curve unemployment will return to the natural rate when:

The Phillips curve shows the relationship between inflation and what?