Inflation - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 1998

If a government wants to reduce the level of inflation, it will?

A. Run a budget surplus
B. Run a budget deficit
C. Run a balanced budget
D. Borrow more money

Question 22:

• JAMB 1999

Inflation which is caused mainly increases in the prices of factors of production is described as?

A. Cost-push inflation
B. Demand-pull inflation
C. Crawling inflation
D. Spiral inflation

Question 23:

• JAMB 1999

If high unemployment goes hand in hand with rising prices, the situation created is?

A. Hyperinflation
B. Stagflation
C. Moderate inflation
D. Galloping inflation

Question 24:

• JAMB 2002

Creeping inflation implies that there is a?

A. Gentle and persistent increase in the general price level
B. Rapid and persistent increase in the general price level
C. Gentle but not permanent increase in the general price level
D. Rapid but not permanent increase in the general price level

Question 25:

• JAMB 2002

Excess demand inflation can be controlled through?

A. Contractionary fiscal policy
B. Contractionary trade policy
C. Expansionary fiscal policy
D. Expansionary monetary policy