Here are some MCQs on Inflation and Price Rise
1. What is inflation?
a) A decrease in the general price level
b) An increase in the general price level
c) Stability in the general price level
d) Fluctuations in the general price level
2. Which of the following is not a cause of inflation?
a) Increase in demand
b) Decrease in money supply
c) Increase in production
d) Increase in government spending
3. Inflation is usually measured using which index?
a) Consumer Price Index (CPI)
b) Gross Domestic Product (GDP)
c) Producer Price Index (PPI)
d) Unemployment Rate
4. Which of the following is an example of demand-pull inflation?
a) Increase in the cost of raw materials
b) Decrease in consumer spending
c) Increase in government spending
d) Decrease in the money supply
5. Cost-push inflation occurs due to:
a) Increase in government spending
b) Decrease in wages
c) Increase in production
d) Increase in production costs
