Inflation Jamb Economics Past Questions
Question 1
Which of the following is likely to be inflationary
- A. taxes increase
- B. increase in unemployment
- C. budget surplus
- D. wages increase
Question 2
Inflation is likely to benefit_______
- A. Debtors
- B. Persons with back savings
- C. Creditors
- D. Persons who lived on fixed pension funds
Question 3
Inflation can be curbed by _______
- A. Deficit budget
- B. Paying higher wages
- C. Increased aggregate demand
- D. Reducing aggregate demand
Question 4
Demand-pull inflation is likely to be caused by
- A. an increase in the cost of factor inputs
- B. increase in the income tax rate
- C. increase in bank lending rate
- D. increasingly large budget deficit
Question 5
Cost - push inflation occurs when_______
- A. production cost is high
- B. government embarks on deficits financing
- C. factors decrease
- D. there is too much in circulation
