In 1989, the CPI was 124.0 in 1990, it was 130.7 What was the rate of inflation over this period ? A. 5.4 percent B. 30.7 percent C. You can’t tell without knowing the base year D. 5.1 percent
The Phillips curve shows the relationship between inflation and what ? A. The balance of trade B. The rate of growth in an economyC. The rate of price increase D. Unemployment
In the short run unemployment may fall below the natural rate of unemployment if ? A. Nominal wages have risen less than inflation B. Nominal wages have risen at the same rate as inflationC. Nominal wages have risen more than…
The effect of inflation on the price competitiveness of a country’s products may be offset by ? A. An appreciation of the currency B. A revaluation of the currency C. A depreciation of the currencyD. Lower inflation abroad
An increase in aggregate demand is more likely to lead to demand pull inflation if ? A. Aggregate supply is perfectly elasticB. Aggregate supply is Perfectly inelastic C. Aggregate supply is unit elastic D. Aggregate supply is relatively elastic
Inflation ? A. Reduce the cost of living B. Reduce the standard of livingC. Reduce the price of products D. Reduce the purchasing power of a rupee
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 ? A. none of these answers B. Workers will gain at the expense of…
Under Which of the following conditions would you prefer to be the borrower ? A. The nominal rate of interest is 12 percent and the inflation rate is 9 percentB. The nominal rate of interest is 20 percent and the…
If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ? A. 3/8 percent B. 5 percentC. 11 percent D. 24 percent
Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ? A. fallen B. You can’t tell without knowing the base yearC. risen D. stayed the same