inflation productivity MCQs – Page 2

Practise focused inflation productivity questions with marked answers for exam preparation and subject revision.

inflation productivity Mcqs
21. In the short run unemployment may fall below the natural rate of unemployment if ?
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A. Nominal wages have risen less than inflation

B. Nominal wages have risen less than unemployment

C. Nominal wages have risen at the same rate as inflation

D. Nominal wages have risen more than inflation
22. An increase in aggregate demand is more likely to lead to demand pull inflation if ?
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A. Aggregate supply is unit elastic

B. Aggregate supply is perfectly elastic

C. Aggregate supply is Perfectly inelastic

D. Aggregate supply is relatively elastic

23. Which of the following statements is correct ?
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A. The real interest rate is the nominal interest rate minus the inflation rate

B. The nominal interest rate is the real interest rate minus the inflation rate.

C. none of these answers

D. The nominal interest rate is the inflation rate minus the real interest rate

24. Demand pull inflation may be caused by ?
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A. A reduction in government spending

B. An increase in costs

C. An outward shift in aggregate supply

D. A reduction in interest rate