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.

This CBSE Class 11 Economics practice quiz has 31 multiple-choice questions on Inflation and Unemployment. Try the 5 sample questions below (tap an option to check yourself), then play the full quiz 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%

More questions in this quiz

Answers and explanations are in the full quiz.

1. Which of the following is NOT a cause of inflation?
2. Which index is commonly used to measure inflation?
3. How does hyperinflation typically affect an economy?
4. What is structural unemployment?
5. Which of the following is an example of cyclical unemployment?
6. What is the impact of inflation on purchasing power?
7. Which of the following is a cause of demand-pull inflation?
8. What is a classic definition of unemployment?
9. Which type of unemployment is caused by the economic cycle?
10. What are the long-term effects of sustained inflation?
11. How does inflation affect the savings of individuals?
12. Which of the following is a consequence of inflation?
13. What is the primary measure of inflation?
14. What is hyperinflation?
15. What is cyclical unemployment?
16. What term describes a situation where both inflation and unemployment are high?
17. In which phase of the business cycle does inflation typically rise?
18. Which of the following is not a type of unemployment?
19. What is the likely effect of high inflation on a currency's value?
20. What can be a policy response to combat high inflation?
21. Which concept explains the relationship between inflation and unemployment in the short run?
22. At what point does inflation become detrimental to economic growth?
23. Which monetary policy tool is primarily used to control inflation?
24. Which theorist proposed the concept of adaptive expectations related to inflation?
25. How does inflation targeting affect monetary policy?
26. What occurs during the 'wage-price spiral'?

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