Q1.The cause of the inflation is ?
Ans:-Increase in money supply and fall in production.
Q2.The period of high inflation ,low economic growth and high unemployment is termed as?
Ans:-Stagflation
Q3.A steady increase in the general level of prices as a result in the aggregate demand is increasing at unsustainable rate as compared to aggregate supply is termed as ?
Ans:-Demand pull inflation
Q4.Inflation brings most benefit to which?
Ans:-Debtors
Q5.What is the base year for measuring inflation at Wholesale Price Index(WPI) in India ?
Ans:-2011-2012
Q6.The effect of inflation on tax revenue results in a situation known as ?
Ans:-Fiscal Drag
Q7.Inflationary Gap means ?
Ans:-The real GDP exceeding the potential GDP , resulting in a inflationary gap.
Q8.How inflation affects the value of Money ?
Ans:-The Value of Money decreases
Q9.What is Disinflation?
Ans:-It means decrease in the rate of Inflation.
Q10.Which relationship are represented by Phillips curve ?
Ans:-Inflation and Unemployment
Q11.An inflation measure which excludes transitory or temporary price volatility as in the case of some commodities such as food items , energy products etc.It reflects the inflation trends in an economy is called?
Ans:-Core Inflation
Q12.Who release Consumer Price Index In India?
Ans:-Central statistics office
Q13.Which computes the Wholesale Price Index in India ?
Ans:-Office of Economic Adviser
Q14.RESIDEX,Which is quarterly index of residential prices,was developed and published by ?
Ans:-NHB