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Up To Date Inflation & Productivity MCQs ( Economics ) MCQs Updated Economics MCQs

Up To Date Inflation & Productivity MCQs ( Economics ) MCQs Updated Economics MCQs

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Latest Economics MCQs

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Latest Inflation & Productivity Mcqs ( Economics ) Mcqs

The most occurred mcqs of Inflation & Productivity Mcqs ( Economics ) in past papers. Past papers of Inflation & Productivity Mcqs ( Economics ) Mcqs. Past papers of Inflation & Productivity Mcqs ( Economics ) Mcqs . Mcqs are the necessary part of any competitive / job related exams. The Mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Inflation & Productivity Mcqs ( Economics ) Mcqs. The Important series of Inflation & Productivity Mcqs ( Economics ) Mcqs are given below:

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

A. Nominal wages are equal to expected wages
B. Nominal wages are growing faster than inflation
C. Real wages are back at equilibrium level
D. Inflation is higher than the growth of nominal wages

Menu costs in relation to inflation refers to ?

A. Costs of money increasing its value
B. Costs of altering price lists
C. Costs of finding better rates of return
D. Costs of revaluing the currency

An increase in costs will ?

A. Reduce the natural rate of unemployment
B. Shift aggregate supply
C. Shift aggregate demand
D. Increase the productivity of employees

An increase in injections into the economy may lead to ?

A. An outward shift of aggregate demand- and demand-pull inflation
B. An outward shift of aggregate supply and demand-pull inflation
C. An outward shift of aggregate demand and cost push inflation
D. An outward shift of aggregate supply and cost push inflation

Macroeconomic Policy Tools MCQs

Demand pull inflation may be caused by ?

A. A reduction in government spending
B. A reduction in interest rate
C. An increase in costs
D. An outward shift in aggregate supply

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

A. None of these answers
B. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract
C. borrowers will gain at the expense of lenders
D. lenders will gain at the expense of borrowers

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

A. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
B. The nominal rate of interest is 15 percent and the inflation rate is 14 percent
C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
D. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

Which of the following statements is correct ?

A. none of these answers
B. The nominal interest rate is the real interest rate minus the inflation rate.
C. The real interest rate is the nominal interest rate minus the inflation rate
D. The nominal interest rate is the inflation rate minus the real interest rate

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

A. 4 percent
B. -4 percent
C. 10 percent
D. 3 percent
E. 21 percent

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

A. Rs418.75
B. Rs459.25
C. Rs300
D. None of these

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

A. total current production
B. Products purchased by the typical consumer
C. raw materials purchased by firms
D. consumer production
E. none of these answers

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. 5.1 percent
C. You can’t tell without knowing the base year
D. 30.7 percent

The Phillips curve shows the relationship between inflation and what ?

A. The rate of growth in an economy
B. The balance of trade
C. 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 at the same rate as inflation
B. Nominal wages have risen less than inflation
C. Nominal wages have risen more than inflation
D. Nominal wages have risen less than unemployment

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

A. A revaluation of the currency
B. An appreciation of the currency
C. A depreciation of the currency
D. Lower inflation abroad

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

A. Aggregate supply is unit elastic
B. Aggregate supply is Perfectly inelastic
C. Aggregate supply is perfectly elastic
D. Aggregate supply is relatively elastic

Inflation ?

A. Reduce the standard of living
B. Reduce the cost of living
C. 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. neither workers nor firms will gain because the increase in wages in fixed in the labor agreement
C. Workers will gain at the expense of firms
D. firms will gain at the expense of workers.

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

A. The nominal rate of interest is 5 percent and the inflation rate is 1 percent
B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
D. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

Elasticity MCQs

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

A. 5 percent
B. 3/8 percent
C. 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. stayed the same
B. You can’t tell without knowing the base year
C. risen
D. fallen

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 ?

A. none of these answers
B. substitution bias
C. bias due to unmeasured quality change
D. base year bias
E. bias due to the introduction of new goods.

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

A. An increase in the price of BMWs produced in Germany and sold in the Pakistan
B. An increase in the price of helicopters purchased by the Pak Navy.
C. An increase in the price of Peugeots produced in the Pakistan
D. An increased in the Price of domestically produced armoured vehicles sold exclusively to Iran

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

A. All of these answers are used to measure inflation.
B. Producer price index
C. consumer price index
D. GDP deflector
E. finished goods price index

Up To Date Inflation & Productivity MCQs ( Economics ) MCQs Updated Economics MCQs