Inflation
ICSE · Class 10 · Economics
Practice quiz for Inflation — ICSE Class 10 Economics. MCQs and questions with answers to test your preparation.
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What is inflation?
What does WPI stand for?
The relationship between value of money and price level is:
Creeping inflation occurs when prices rise at what annual rate?
Sample Questions
Which of the following are features of inflation?
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Prices rise continuously, Prices rise at a faster rate, Prices rise over a long period
Inflation features include continuous price rises, faster rate of increase, and persistence over long periods. Not all goods increase equally, and one-time increases don't constitute inflation.
Which types of inflation are generally harmful to the economy?
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Walking inflation, Running inflation, Hyperinflation
Walking, running, and hyperinflation are harmful as they create economic instability. Only creeping inflation (1-3%) is beneficial for growth.
Demand pull inflation is also known as:
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Excess demand inflation
Demand pull inflation is also called 'excess demand inflation' because it occurs when aggregate demand exceeds the available supply at current prices.
Which factors cause demand pull inflation?
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Increase in money supply, Increase in population, Increase in export demand
Demand pull inflation is caused by factors that increase demand: more money supply, higher population, and increased exports. Rise in wages and higher taxes cause cost push inflation.
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