The Main Causes of Inflation (HSC SSCE Economics): Quizzes
📚Quizzes
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10 questions from this quiz
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Practise the questions
10 questions from this quiz
What causes demand-pull inflation?
What causes demand-pull inflation?
Total spending exceeds productive capacity
Why do prices rise during demand-pull inflation?
Why do prices rise during demand-pull inflation?
Output cannot expand quickly enough
Which side of the economy does cost-push inflation originate from?
Which side of the economy does cost-push inflation originate from?
Supply side
What percentage of a firm's total expenses do labour costs typically represent?
What percentage of a firm's total expenses do labour costs typically represent?
Around 60%
How do inflationary expectations become self-fulfilling?
How do inflationary expectations become self-fulfilling?
Expectations shape behaviour creating inflation
How do consumers respond when they expect prices to rise soon?
How do consumers respond when they expect prices to rise soon?
Bring forward planned purchases
How does currency depreciation cause imported inflation?
How does currency depreciation cause imported inflation?
Makes imports more expensive domestically
What inflation rate did Australia reach following the GST introduction in 2000?
What inflation rate did Australia reach following the GST introduction in 2000?
6.1% in 2001
In the equation , what must happen if grows faster than with stable ?
In the equation , what must happen if grows faster than with stable ?
must rise
What was Australia's peak headline inflation rate during the 2020-2023 period?
What was Australia's peak headline inflation rate during the 2020-2023 period?
7.8% in December 2022