Test yourself!

Here are 3 MCQ questions for you to see if you truly understand what is inflation and inflationary growth!

1.   Which of the following is not a characteristic of inflationary growth?

      a. Actual growth exceeds potential growth in the economy.

      b. Rise in the general price level of goods and services.

      c. Production is halted.

      d. Economic growth still occurs but with inflation.

 

2.   Inflationary growth causes all of the following, except _______.

      a. Uncertainty

      b. Hoarding

      c. Increase in purchasing power per unit of money

      d. Hyperinflation 

3.   Policies to tackle inflationary growth can focus on _______.

     a. Implementing a price floor

     b. Currency appreciation

     c. Increasing aggregate demand

     d. Decreasing aggregate supply

 How did you score?

0/3-- This is bad! I suggest you re-read all of the posts and attempt again!

1/3-- Decent,, but can be much better! You know some of your stuff, but not all! Do continue reading up

2/3-- Not bad! You have 66%! You understand the concepts of inflation and inflationary growth, but not yet perfect!

3/3-- Perfection! You are a true economist! But do read up on other aspects of economics as well!

Answers: 1)C 2)C 3)B