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Subject
Inflation & Productivityeconomics-mcqs › inflation-productivity
Published
1 Jun 2019
Last updated
28 May 2026

Browse all Inflation & Productivity MCQs

If your income increases from Rs19,000 to Rs31,000 while the Consumer Price Index (CPI) rises from 122 to 169, how has your standard of living most likely changed?

Multiple choice question for Inflation & Productivity. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Given that your income has increased proportionally more than the rise in the CPI, your purchasing power has improved, indicating that your standard of living has likely risen.

Practice related questions from the same subject.

  1. 1.According to the Phillips curve theory, when does unemployment revert to its natural rate?
  2. 2.What do menu costs signify in the context of inflation?
  3. 3.What is the effect of a rise in production costs on the economy?
  4. 4.What is the likely effect on the economy when injections into it increase?
  5. 5.Which of the following can trigger demand-pull inflation?

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