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Inflation Flashcards | StudBud

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Inflation

12 terms·StudBud Administration·719 plays

NCEA Level 2

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Questions 12

Answers

1
The Quantity Theory of Money is
MP = VQ
MV = MP
MV = PQ
MV - PQ
2
Inflation is measured using
OCR
CPI
NZD
GDP
3
Disinflation is ....
A decrease in the inflation rate
A high rate of inflation
An increase in the inflation rate
Negative inflation
4
Under the sophisticated quantity theory of money which variables are not constant
V and Q
M and P
All variables are constant
No variables are constant
5
Deflation is
good
cheeky
Bad
spelt incorrectly
6
Who is responsible in New Zealand form maintaining stable prices?
RBNZ
Minister of Finance
Treasury
Government
7
All of the following are determinents of Aggregate Supply except
Nominal Wages
Real Wages
Price of imported raw materials
Productivity
8
Demand Pull Inflation is caused by
A decrease in AD
An increase in AD
A decrease in AS
An increase in AS
9
The crude quantity theory of money assumes
M = Q
V is constant
P is constant
M is constant
10
AD equals
C + I + G + (X + M)
C + L + G + (X - M)
C + I + G + (X - M)
C - I + G + (X - M)
11
A fall in interest rates will
Make consumers angry
Decrease Demand
Increase AD
Decrease AD
12
The most inflationary stage of the Business Cycle is
Recession
Recovery
Boom
Depression