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Causes of Inflation Quiz

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1. What is the most common cause of demand-pull inflation?

2. What is a primary cause of cost-push inflation?

3. What is the primary cause of built-in inflation?

4. What effect does expansionary monetary policy typically have on inflation?

5. In terms of inflation, what is 'too much money chasing too few goods' an example of?

6. Which of the following could lead to hyperinflation?

7. What role does increased consumer confidence play in causing inflation?

8. What is the impact of a wage-price spiral on inflation?

9. How does an increase in raw material prices potentially lead to inflation?

10. What would most likely happen in terms of inflation if the government increases minimum wage significantly?