Inflation Jamb Economics Past Questions
Question 11
An increase in the circulation of money without a corresponding increase in output will lead to
- A. a rise in income levels
- B. stagflation
- C. inflation
- D. deflation
Question 12
An inflation that co-exists with high rate of unemployment is
- A. hyperinflation
- B. stagflation
- C. demand-pull inflation
- D. cost-push inflation
Question 13
If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index
- A. 100
- B. 200
- C. 240
- D. 300
Question 14
The high rate of inflation in Nigeria can be attributed to
- A. increasing cost of production
- B. the appreciation of the naira
- C. decreasing cost of production
- D. high capacity utilization
Question 15
Cost-push inflation occurs when
- A. production cost is high
- B. factor prices decrease
- C. there is too much money in circulation
- D. government embarks on deficit financing
