Low and stable inflation

Question 1

What does IGCSE stand for?

Answer 1

International General Certificate of Secondary Education

Question 2

True or False: Low inflation is desirable in an economy.

Answer 2

True

Question 3

Fill in the blank: The main goal of economic policy is to achieve _____ growth.

Answer 3

sustainable

Question 4

What term describes the measure of the general level of prices in an economy?

Answer 4

Inflation

Question 5

Multiple Choice: Which of the following is NOT a type of inflation? A) Demand-pull B) Cost-push C) Supply-side D) Built-in

Answer 5

C) Supply-side

Question 6

What is the economic term for a sustained increase in the price level?

Answer 6

Inflation

Question 7

Short Answer: Name one consequence of high inflation.

Answer 7

Decreased purchasing power

Question 8

True or False: A stable economy is characterized by unpredictable fluctuations.

Answer 8

False

Question 9

Fill in the blank: The _____ rate measures the percentage change in prices over a period.

Answer 9

inflation

Question 10

What does a low and stable inflation rate indicate about an economy?

Answer 10

It suggests economic stability and predictability.

Question 11

Multiple Choice: Which of the following is a goal of monetary policy? A) Increase unemployment B) Control inflation C) Raise taxes D) Decrease savings

Answer 11

B) Control inflation

Question 12

What is the relationship between inflation and interest rates?

Answer 12

Generally, higher inflation leads to higher interest rates.

Question 13

True or False: Deflation can lead to increased economic activity.

Answer 13

False

Question 14

What is the term for a decrease in the general price level of goods and services?

Answer 14

Deflation

Question 15

Fill in the blank: The _____ index is commonly used to measure inflation.

Answer 15

Consumer Price