Description : When too much money is chasing too few goods, the situation is - (1) deflation (2) inflation (3) recession (4) stagflation
Last Answer : (2) inflation Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and ... few goods", since only money that is spent on goods and services can cause inflation.
Description : When too much money is chasing too few goods, the situation is - (1) Deflation (2) Inflation (3) Recession (4) Stagflation
Last Answer : (2) Inflation Explanation: Inflation occurs when too much money is chasing too few goods. The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of ... prices is a result from an increase in the supply of money by central banking authorities.
Description : Stagflation is a situation of - (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery
Last Answer : (3) stagnation and inflation Explanation: Stagflation is a situation of stagnation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. Stagflation occurs ... t growing but prices are, which is not a good situation for a country to be in
Description : Stagflation is a situation of (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery
Last Answer : stagnation and inflation
Description : Inflation is a situation characterized by (1) Too much money chasing too few goods (2) Too few money chasing too much goods (3) Too many people chasing too few goods (4) Too many people chasing too little money
Last Answer : (1) Too much money chasing too few goods Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross ... the Phillips curve. This is commonly described as "too much money chasing too few goods."
Description : Inflation is a situation characterised by (1) Too much money chasing too few goods (2) Too few money chasing too much goods (3) Too many people chasing too few goods (4) Too many people chasing too little money
Last Answer : Too much money chasing too few goods
Description : Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment
Last Answer : (4) inflation and rising unemployment Explanation: Stagflation describes a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high ... economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.
Description : Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment
Last Answer : inflation and rising unemployment
Description : Pump priming should be resorted to at a time of? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation
Last Answer : (2) Deflation Explanation: Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions. ... the injection of funds, with the goal of prompting higher demand for goods and services.
Description : Pump priming should be resorted to at a time of ? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation
Last Answer : Deflation
Description : Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.
Description : Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : inflation
Description : Economic growth is normally coupled with? A. Inflation B. Hyper Inflation C. Deflation D. Stagflation
Last Answer : A. Inflation
Description : Deflation is a situation in which - (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.
Last Answer : (3) The value of money is increasing. Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused ... conversely, deflation increases the real value of money - the currency of a national or regional economy.
Description : Deflation is a situation in which (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.
Last Answer : The value of money is increasing.
Description : Is deflation "worse" than inflation?
Last Answer : When you are in a period of deflation people hold off buying goods and services on the sure knowledge that if they wait a while those goods will be available at a lower price. This then decreases ... burnt bank notes to keep warm as they were so worthless in comparison to wood and coal as fuel.
Description : The term stagflation refers to a situation where - (1) growth has no relation with the change in prices (2) rate of growth and prices both are decreasing (3) rate of growth in faster than the rate of price increase (4) rate of growth is slower than the rate of price increase
Last Answer : (4) rate of growth is slower than the rate of price increase Explanation: In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows ... developed countries. For these countries, including the U.S., stag-nation increased the inflationary effects.
Description : The term stagflation refers to a situation where (1) growth has no relation with the change in prices (2) rate of growth and prices both are decreasing (3) rate of growth in faster than the rate of price increase (4) rate of growth is slower than the rate of price increase
Last Answer : rate of growth is slower than the rate of price increase
Description : What happens when there is a demand deficiency in an economy? (1) Poverty (2) Stagnation (3) Recession (4) Inflation
Last Answer : (2) Stagnation Explanation: Deficient demand refers to the situation when aggregate demand for goods and services falls short of aggregate supply of output which is produced by fully employing ... which both capital and labor are redundant relative to the opportunities for employing them profitably.
Last Answer : Stagnation
Description : What is the difference between inflation and deflation?
Last Answer : I don’t think there is any difference, they are the same.
Description : Development means economic growth plus (1) Inflation (2) Deflation (3) Price stability (4) Social change
Last Answer : (4) Social change
Description : In India, Inflation measured by the : A. National Income Deflation B. Wholesale Price Index number C. Consumer Price Index D. None of above
Last Answer : C. Consumer Price Index
Description : Development means economic growth with: A. Price Stability B. Social Change C. Inflation D. Deflation
Last Answer : B. Social Change
Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy
Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C
Last Answer : c. budget surplus of $1000
Description : State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy
Last Answer : the extent of inflation in the prices of consumer goods
Description : Should we try to increase inflation to end the Great Recession?
Last Answer : You know, I find it almost impossible to get involved in a theoretical debate when this Congress can’t or won’t do anything constructive.
Description : The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is ... ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors
Last Answer : ; (c) Indirect economic factors ;
Description : Will the U.S. economy see hyperinflation, or deflation followed by hyperinflation?
Last Answer : There are several approaches to correcting our current monetary situation. I personally hope we don't see hyperinflation at all because we are weaning ourselves off the Fed and taking responsibility for our ... Iraq, using that money for infrastructure, and weaning America off the Fed bill by bill.
Description : When there is an official change in the exchange rate of domestic currency, then it is called (1) Appreciation (2) Depreciation (3) Revaluation (4) Deflation
Last Answer : (2) Depreciation Explanation: Revaluation is a calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold ... . central bank) can alter the official value of the currency. It is opposite of devaluation.
Description : When there is an official change in the exchange rate of domestic currency, then it is called : (1) Appreciation (2) Depreciation (3) Revaluation (4) Deflation
Last Answer : Revaluation
Description : One of the essential conditions of perfect competition is : (1) product differentiation (2) multiplicity of prices for identical products at any one time. (3) many sellers and a few buyers. (4) Only one price for identical goods at any one time.
Last Answer : (4) Only one price for identical goods at any one time. Explanation: The fundamental condition of perfect competition is that there must be a large number of sellers or firms. ... perfect competition, the control over price is completely eliminated because all firms produce homogeneous commodities.
Description : Terms of trade in developing countries are generally unfavourable because (a) They export manufacturing products. (b) They export primary products. © They export few goods. (d) Both (a) and (c).
Last Answer : (b) They export primary products.
Last Answer : Only one price for identical goods at any one time.
Description : A Black Market is a situation where in (1) Goods are loaded by the producers (2) Goods are sold secretly (3) Goods are sold at prices higher than what is fixed by the Government (4) Goods are made available
Last Answer : (2) Goods are sold secretly Explanation: Black market is the market in which illegal goods are traded. Goods acquired illegally take one of two price levels: (i) they may be cheaper than legal ... defining feature of black markets is that they have to be carried out secretly as they are illegal.
Description : A situation of large number of firms producing similar goods is termed as : (1) Perfect competition (2) Monopolistic competition (3) Pure competition (4) Oligopoly
Last Answer : (1) Perfect competition Explanation: The fundamental condition of perfect competition • is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical.
Description : A Black Market is a situation wherein (1) Goods are loaded by the producers (2) Goods are sold secretly (3) Goods are sold at prices higher than what is fixed by the Government (4) Goods are made available (sold) only after there is a rise in prices
Last Answer : Goods are sold secretly
Last Answer : Perfect competition
Description : The process of curing inflation by reducing money supply is called - (1) Cost-push inflation (2) Demand-pull inflation (3) Disinflation (4) Reflation
Last Answer : (3) Disinflation Explanation: Disinflation is a decrease in the rate of inflation -a slowdown in the rate of increase of the general price level of goods and services in a nation's gross ... a very short period of time. Disinflation takes place only when an economy is suffering from recession.
Description : Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : (4) decreasing money supply Explanation: The technical and most often used way to control inflation is by tightening the money supply. The logic goes that when people do not have excess money, ... . Most central banks use high interest rates as the traditional way to fight or prevent inflation.
Description : Which of the following can be used for checking inflation temporarily? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : (2) Decrease in money supply Explanation: An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. India ... those in the other developed countries. Economists claim that an increase in money supply alone constitutes inflation.
Description : In a period of inflation and price rises the supply of money remains - (1) the same (2) increases (3) decreases (4) increases or decreases pro-portionately.
Last Answer : (2) increases Explanation: Money supply is the total amount of monetary assets available in an economy at a specific time. The relation between money and prices is historically associated with the quantity ... money-supply growth, at least for rapid increases in the amount of money in the economy.
Description : Inflation is caused by - (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : (1) increase in money supply and decrease in production Explanation: Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of ... few goods. The increase in money supply is not matched by the equivalent production of goods.
Description : "Dear Money" means - (1) low rate of interest (2) high rate of interest (3) depression (4) inflation
Last Answer : (2) high rate of interest Explanation: Dear Money, also known as tight money, is money which has to be borrowed at a high interest rate, and so restricts expenditure by companies. This situation ... supply and demand. Businesses may have a tough time raising capital during a period of dear money.
Description : Inflation is caused by (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : increase in money supply and decrease in production
Description : Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : decreasing money supply
Description : In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.
Last Answer : increases
Description : The process of curing inflation by reducing money supply is called (1) Cost-push inflation (2) Demand-pull inflation (3) Disinflation (4) Reflation
Last Answer : Disinflation
Description : Which of the following can be used for checking inflation temporarily ? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : Decrease in money supply