Inflation And Trade Cycles
Telangana Open School (TOSS) · Class 12 · Economics
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Quick Quiz: Inflation And Trade Cycles
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What is inflation?
Which of the following best describes creeping inflation?
Which index is used to measure inflation in India?
What happens to the purchasing power of money during inflation?
Sample Questions
Which phase of the trade cycle is marked by rising output and employment?
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Expansion
During expansion, national output, employment, and demand all increase.
What is the highest point of a business cycle called?
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Peak
The peak is the topmost point of the business cycle where economic activity is at its highest.
Which of the following is a cause of inflation?
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Deficit financing by the government
Deficit financing increases money supply, leading to inflation.
Who gains during inflation?
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Debtors
Debtors repay loans with money that has less purchasing power, so they benefit.
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