Types of Inflation and Price Stability CDS Questions

CDS Economy

Types of Inflation and Price Stability MCQ Questions


13.
Inflation caused by higher money wages secured by powerful trade unions is called
A.
wage-push inflation
B.
profit-push inflation
C.
material-cost push inflation
D.
deficit-induced inflation
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ANSWER :
A. wage-push inflation
14.
Inflation arising because firms in monopolistic or oligopolistic industries raise their profit margins is termed
A.
deficit-induced inflation
B.
profit-push inflation
C.
structural inflation
D.
wage-push inflation
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ANSWER :
B. profit-push inflation
15.
In the aggregate demand–supply analysis of cost-push inflation, an upward shift of the aggregate supply curve leads to
A.
a rise in output and a fall in prices
B.
a rise in both output and prices
C.
a fall in output and a rise in the price level
D.
no change in either output or prices
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ANSWER :
C. a fall in output and a rise in the price level
16.
The observation that cost inflation 'has been the layman's instinctive explanation of general price increases' is attributed to
A.
Pigou and Hawtrey
B.
Friedman and Phillips
C.
Keynes and Gregory
D.
Bronfenbrenner and Holzman
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ANSWER :
D. Bronfenbrenner and Holzman
17.
A supply shock such as a sudden steep rise in global crude oil prices typically causes
A.
cost-push inflation
B.
disinflation
C.
deflation
D.
demand-pull inflation
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ANSWER :
A. cost-push inflation
18.
Cost-push inflation began to attract serious attention from economists during the
A.
1990s
B.
1950s
C.
1930s
D.
1970s
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ANSWER :
B. 1950s