Inflation and Unemployment Quiz - CBSE Class 11 Economics

Free practice quiz: Inflation and Unemployment (CBSE Class 11 Economics). 31 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

Sample questions

1. What is inflation?

   1. A decrease in the general price level of goods and services
   2. An increase in the general price level of goods and services
   3. A stable price level
   4. An increase in unemployment rates
   Show answer

   Answer: B. An increase in the general price level of goods and services

2. How can central banks control inflation?

   1. By lowering interest rates
   2. By printing more money
   3. By raising interest rates
   4. By increasing government spending
   Show answer

   Answer: C. By raising interest rates

3. What monetary policy action can be taken to control hyperinflation?

   1. Increase interest rates
   2. Decrease interest rates
   3. Increase government spending
   4. Reduce taxes
   Show answer

   Answer: A. Increase interest rates

4. What factor can reduce the inflation rate?

   1. Increasing interest rates
   2. Decreasing taxes
   3. Increasing government spending
   4. Increasing employment
   Show answer

   Answer: A. Increasing interest rates

5. What is natural rate of unemployment?

   1. 4.5% to 5.5%
   2. 6% to 7%
   3. 3% to 4%
   4. 8% to 9%
   Show answer

   Answer: A. 4.5% to 5.5%

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