Inflation Quiz: Why Prices Rise & Money Shrinks
Take this inflation quiz to understand why prices rise, how demand-pull and cost-push work, what RBI policies do, and how inflation affects purchasing power.
1. When the prices of most goods rise together over time, what is this condition called?
Deflation
Stagflation
Inflation
Recession
Correct Answer
Wrong Answer
2. Which economic situation occurs when inflation remains high despite weak economic growth?
Stagflation
Disinflation
Deflation
Recession
Correct Answer
Wrong Answer
3. Which index tracks price changes at the retail consumer level?
Wholesale Price Index
GDP Deflator
Consumer Price Index
Industrial Output Index
Correct Answer
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4. Which country experienced extreme inflation in the 1920s due to currency overprinting?
Japan
Germany (Weimar Republic)
France
Italy
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5. Which monetary policy stance is adopted to reduce inflationary pressure?
Expansionary Policy
Neutral Policy
Laissez-Faire Policy
Contractionary Policy
Correct Answer
Wrong Answer
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ANAND SWAMI
Senior Content Manager
