Q.21)-The process of curing inflation by reducing money supply is called-
  • Cost-push inflation
  • Demand-pull inflation
  • Disinflation
  • Reflection
Q.22)-The term stagflation refers to a situtions where-
  • Growth has no relation with the change in prices
  • Rate of growth and prices both are decreasing
  • Rate of growth in faster than the rate of price increase
  • Rate of growth in slower than the rate of price increase
Q.23)-Cheap money means-
  • Low Rate of Interest
  • Low Level of savings
  • Low Level Income
  • Excess of Black Money
Q.24)-In a period of inflation and price rise the supply of money remains-
  • The same
  • Increases
  • Decreases
  • Increases or decreases proportionately
Q.25)-Stagflation is a situation of-
  • Stagnation and deflation
  • Stagnation and recession
  • Stagnation and inflation
  • Stagnation and recovery
Q.26)-Deflation is a situation in which-
  • The value of money is falling
  • The price of goods is increasing
  • The value of money is increasing
  • The price level is stagnant
Q.27)-Stagflation refers to a situation which is characterised by-
  • Stagnant employment and deflation
  • Deflation and rising unemployment
  • Inflation and rising employment
  • Inflation and rising unemployment
Q.28)-Who benefits the most during the inflationary period?
  • Corporate servents
  • Creditors
  • Entrepreneurs
  • Government servants
Q.29)-Pump priming should be resorted to at a time of-
  • Inflation
  • Deflation
  • Stagflation
  • Reflation
Q.30)-Inflation is a situation characterized by-
  • Too much money chasing too few goods
  • Too few money chasing too much goods
  • Too many people chasing too few goods
  • Too many people chasing too little goods