31. The Phillips curve illustrates the relationship between:
a) Inflation and unemployment
b) Inflation and interest rates
c) Inflation and GDP growth
d) Inflation and exchange rates
32. The term “creeping inflation” refers to:
a) Mild and gradual increase in prices
b) Rapid and uncontrollable increase in prices
c) Stable prices
d) Deflation
33. Which of the following is a measure of inflation that focuses on changes in the prices of goods and services purchased by households?
a) Producer Price Index (PPI)
b) Consumer Price Index (CPI)
c) Wholesale Price Index (WPI)
d) Gross Domestic Product (GDP)
34. Inflationary expectations refer to:
a) The rate at which prices are currently rising
b) The anticipated future rate of inflation
c) The historical rate of inflation
d) The level of inflation deemed acceptable by the government
35. When the inflation rate is negative, it is referred to as:
a) Stagflation
b) Hyperinflation
c) Deflation
d) Disinflation
