INFLATION

What is the situation of continuously increasing prices ?

• Inflation

• Recession

• Crisis

• Grow

Causes of inflation, except

• The amount of money in circulation exceeds the necessary level

• Raw materials, labor, tax,...reduced

• Total demand of the economy increased

• High production costs

Moderate inflation level will

• The economy is not developed

• Stimulating production and business development

• Does not affect the economy

• Push the economy into a crisis

Which of the follwing content does not reflect the consequences of inflation for social life?

• Unemployment increases

• The living standards of the people decrease

• actual income of workers

• Reduce rich and poor division

How can inflation affect economic activities ?

• Reduce purchasing power

• Saving value reduction

• Influence on investment and promote economic equality

• All the above answers are right

The state usually issues any of the following policies to overcome inflation due to push costs

• Attract investment capital and tax reduction

• Cut the budget spending

• Reduce money supply

• Tax increase

To overcome inflation due to the amount of cash in circulation exceeds the necessary level, the State needs

• Reduces taxes

• Reduce money supply

• Reduce deposit rates

• Increase budget spending

Which of the following statements is incorrect when discussing inflation ?

• Inflation is an expression of currency depreciation

• The price of a few increased goods proves that the economy is inflation

• During the rising inflation period, the savings depositors will be damaged

• High inflation has adversely impacts on economic and social life

What is the cause of inflation ?

• Production costs increased

• High demand

• Excess money in circulation

• All the above answers are right

When inflation causes the inputs of the production process to rise, what leads to ?

• The item produces it will also increase the price

• The price of the goods produced will be stable

• Items are more enthusiastic by consumers

• Goods are created with low quality