Inflation (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
Which indicator does SARB focus on for policy decisions as it affects households' purchasing power?
Which indicator does SARB focus on for policy decisions as it affects households' purchasing power?
Consumer Price Index (CPI)
At what annual rate does inflation become classified as hyperinflation?
At what annual rate does inflation become classified as hyperinflation?
More than 50%
Which three elements characterise stagflation?
Which three elements characterise stagflation?
Low growth, high unemployment, high inflation
What happens when aggregate demand increases faster than aggregate supply?
What happens when aggregate demand increases faster than aggregate supply?
Demand-pull inflation occurs
What percentage of GVA at basic prices do labour costs represent in South Africa?
What percentage of GVA at basic prices do labour costs represent in South Africa?
About 50%
Who benefits from inflation because they repay loans with money having lower purchasing power?
Who benefits from inflation because they repay loans with money having lower purchasing power?
Debtors
What is bracket creep in the context of South African taxpayers?
What is bracket creep in the context of South African taxpayers?
Inflation pushes income into higher tax brackets
Which fiscal measure involves the Minister of Finance cutting expenditure to combat inflation?
Which fiscal measure involves the Minister of Finance cutting expenditure to combat inflation?
Cancelling infrastructure projects
What does SARB raise to encourage savings and discourage borrowing during high inflation?
What does SARB raise to encourage savings and discourage borrowing during high inflation?
The repo rate
What does indexation policy involve to protect people from inflation?
What does indexation policy involve to protect people from inflation?
Linking wages and pensions to price indices