* not completed

. Demand-pull inflation may be caused by:

An increase in costs correct incorrect

A reduction in interest rates correct incorrect

A reduction in government spending correct incorrect

An outward shift in aggregate supply correct incorrect

* not completed

. Inflation:

Always reduces the cost of living correct incorrect

Always reduces the standard of living correct incorrect

Reduces the price of products correct incorrect

Reduces the purchasing power of a pound correct incorrect

* not completed

. An increase in injections into the economy may lead to:

An outward shift of aggregate demand and demand-pull inflation correct incorrect

An outward shift of aggregate demand and cost-push inflation correct incorrect

An outward shift of aggregate supply and demand-pull inflation correct incorrect

An outward shift of aggregate supply and cost-push inflation correct incorrect

* not completed

. An increase in aggregate demand is more likely to lead to demand-pull inflation if:

Aggregate supply is perfectly elastic correct incorrect

Aggregate supply is perfectly inelastic correct incorrect

Aggregate supply is unit elastic correct incorrect

Aggregate supply is relatively elastic correct incorrect

* not completed

. An increase in costs will:

Shift aggregate demand correct incorrect

Shift aggregate supply correct incorrect

Reduce the natural rate of unemployment correct incorrect

Increase the productivity of employees correct incorrect

* not completed

. The effects of inflation on the price competitiveness of a country's products may be offset by:

An appreciation of the currency correct incorrect

A revaluation of the currency correct incorrect

A depreciation of the currency correct incorrect

Lower inflation abroad correct incorrect

* not completed

. Menu costs in relation to inflation refer to:

Costs of finding better rates of return correct incorrect

Costs of altering price lists correct incorrect

Costs of money increasing its value correct incorrect

Costs of revaluing the currency correct incorrect

* not completed

. According to the Phillips curve, unemployment will return to the natural rate when:

Nominal wages are equal to expected wages correct incorrect

Real wages are back at long-run equilibrium level correct incorrect

Nominal wages are growing faster than inflation correct incorrect

Inflation is higher than the growth of nominal wages correct incorrect

* not completed

. In the short run unemployment may fall below the natural rate of unemployment if:

Nominal wages have risen less than inflation correct incorrect

Nominal wages have risen at the same rate as inflation correct incorrect

Nominal wages have risen more than inflation correct incorrect

Nominal wages have risen less than unemployment correct incorrect

* not completed

. The Phillips curve shows the relationship between inflation and what?

The balance of trade correct incorrect

The rate of growth in an economy correct incorrect

The rate of price increases correct incorrect

Unemployment correct incorrect