ECS1601-26-Y Welcome Message Assessment 4
QUIZ
Started on Wednesday, 26 August 2026, 6:58 PM
State Finished
T UTORING FOR
Completed on Wednesday, 26 August 2026, 7:25 PM FAC,MAC,ECS,STA,DSC,TA
Time taken 26 mins 26 secs X, FIN ,INV,QMI,
BNU,MNG,MNB,BSM, CLA
Question 1
Complete whatsapp me
on+27737560989
Marked out of 1.00
EMAIL:
mT UTORING FOR
FAC,MAC,ECS,STA,DSC,TA
In the case of demand-pull inflation, an increase in the general price level is
X, FIN ,INV,QMI,
accompanied by … in total production. In the case of cost-push inflation, an BNU,MNG,MNB,BSM, CLA
increase in the general price level is accompanied by … in total production.
whatsapp me
a. an increase; an increase on+27737560989
EMAIL:
b. a decrease; a decrease
m
c. an increase; a decrease
d. a decrease; an increase
Question 2
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Demand-pull inflation occurs when higher demand pulls prices up, usually
alongside higher production/output. Cost-push inflation results from rising
production costs, which push prices up while reducing output.
Word count: 27
,Question 3
Complete
Marked out of 1.00
In response to the COVID-19 pandemic, countries injected trillions of dollars
into their economies to provide relief to households and firms. This response is
an example of ... policy, which can result in ... inflation, ceteris paribus.
a. expansionary; cost-push
b. contractionary; demand-pull
c. contractionary; cost-push
d. expansionary; demand-pull
Question 4
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Injecting money into the economy is an expansionary policy because it
aims to boost spending and economic activity.If this demand grows faster
than supply, it can lead to demand-pull inflationIf this demand grows faster
than supply, it can lead to demand-pull inflation
Word count: 42
Question 5
Complete
Marked out of 1.00
If imported fuel and transport costs rise sharply, the most suitable response in
an economy with high unemployment would be to...
a. use contractionary monetary policy, shown by a leftward shift of the AD
curve.
b. expand aggregate demand through higher government spending.
c. use supply-side measures that raise aggregate supply, shown by a
rightward shift of the AS curve.
d. reduce productivity, shown by a leftward shift of the AS curve.
,Question 6
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Rising imported fuel and transport costs are a cost-push shock, shifting
aggregate supply (AS) leftward—raising prices and lowering output. With
high unemployment, reducing demand (option a) would worsen
unemployment. Expanding demand (option b) could raise inflation further.
The best approach is supply-side measures
Word count: 44
Question 7
Complete
Marked out of 1.00
Which one of the following is the cause of demand-pull inflation?
a. a decrease in government spending
b. an increase in the cost of labour
c. a decrease in interest rates
d. the leftward shift of the AD curve
Question 8
Complete
Not graded
The question above refers. Please provide a justification for your answer.
A decrease in interest rates makes borrowing cheaper, so households and
firms spend more, which increases aggregate demand (AD); this rightward
shift of the AD curve pulls prices up, causing demand-pull inflation.
Word count: 32
, Question 9
Complete
Marked out of 1.00
If the inflation rate increases and nominal interest rate is unchanged, then
_________.
a. the real interest rate will decrease
b. the real interest rate will be unchanged
c. the real interest rate will increase
d. the nominal interest rate will decrease
Question 10
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Real interest rate = Nominal interest rate − Inflation rate
Word count: 10
Question 11
Complete
Marked out of 1.00
Which statement best distinguishes the consumer price index (CPI) from the
producer price index (PPI)?
a. PPI increases automatically reduce CPI, and CPI changes never affect
producer prices.
b. PPI measures prices at producer level, while CPI excludes intermediate
goods from the consumer basket.
c. PPI measures household living costs, while CPI measures production
costs.
d. PPI covers only services bought by households, while CPI covers
producer inputs.
QUIZ
Started on Wednesday, 26 August 2026, 6:58 PM
State Finished
T UTORING FOR
Completed on Wednesday, 26 August 2026, 7:25 PM FAC,MAC,ECS,STA,DSC,TA
Time taken 26 mins 26 secs X, FIN ,INV,QMI,
BNU,MNG,MNB,BSM, CLA
Question 1
Complete whatsapp me
on+27737560989
Marked out of 1.00
EMAIL:
mT UTORING FOR
FAC,MAC,ECS,STA,DSC,TA
In the case of demand-pull inflation, an increase in the general price level is
X, FIN ,INV,QMI,
accompanied by … in total production. In the case of cost-push inflation, an BNU,MNG,MNB,BSM, CLA
increase in the general price level is accompanied by … in total production.
whatsapp me
a. an increase; an increase on+27737560989
EMAIL:
b. a decrease; a decrease
m
c. an increase; a decrease
d. a decrease; an increase
Question 2
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Demand-pull inflation occurs when higher demand pulls prices up, usually
alongside higher production/output. Cost-push inflation results from rising
production costs, which push prices up while reducing output.
Word count: 27
,Question 3
Complete
Marked out of 1.00
In response to the COVID-19 pandemic, countries injected trillions of dollars
into their economies to provide relief to households and firms. This response is
an example of ... policy, which can result in ... inflation, ceteris paribus.
a. expansionary; cost-push
b. contractionary; demand-pull
c. contractionary; cost-push
d. expansionary; demand-pull
Question 4
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Injecting money into the economy is an expansionary policy because it
aims to boost spending and economic activity.If this demand grows faster
than supply, it can lead to demand-pull inflationIf this demand grows faster
than supply, it can lead to demand-pull inflation
Word count: 42
Question 5
Complete
Marked out of 1.00
If imported fuel and transport costs rise sharply, the most suitable response in
an economy with high unemployment would be to...
a. use contractionary monetary policy, shown by a leftward shift of the AD
curve.
b. expand aggregate demand through higher government spending.
c. use supply-side measures that raise aggregate supply, shown by a
rightward shift of the AS curve.
d. reduce productivity, shown by a leftward shift of the AS curve.
,Question 6
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Rising imported fuel and transport costs are a cost-push shock, shifting
aggregate supply (AS) leftward—raising prices and lowering output. With
high unemployment, reducing demand (option a) would worsen
unemployment. Expanding demand (option b) could raise inflation further.
The best approach is supply-side measures
Word count: 44
Question 7
Complete
Marked out of 1.00
Which one of the following is the cause of demand-pull inflation?
a. a decrease in government spending
b. an increase in the cost of labour
c. a decrease in interest rates
d. the leftward shift of the AD curve
Question 8
Complete
Not graded
The question above refers. Please provide a justification for your answer.
A decrease in interest rates makes borrowing cheaper, so households and
firms spend more, which increases aggregate demand (AD); this rightward
shift of the AD curve pulls prices up, causing demand-pull inflation.
Word count: 32
, Question 9
Complete
Marked out of 1.00
If the inflation rate increases and nominal interest rate is unchanged, then
_________.
a. the real interest rate will decrease
b. the real interest rate will be unchanged
c. the real interest rate will increase
d. the nominal interest rate will decrease
Question 10
Complete
Not graded
The question above refers. Please provide a justification for your answer.
Real interest rate = Nominal interest rate − Inflation rate
Word count: 10
Question 11
Complete
Marked out of 1.00
Which statement best distinguishes the consumer price index (CPI) from the
producer price index (PPI)?
a. PPI increases automatically reduce CPI, and CPI changes never affect
producer prices.
b. PPI measures prices at producer level, while CPI excludes intermediate
goods from the consumer basket.
c. PPI measures household living costs, while CPI measures production
costs.
d. PPI covers only services bought by households, while CPI covers
producer inputs.
