Which of the following statements about the causes of inflation in the price of goods and services based on the material covered in the lecture are TRUE:A Neo-Keynesian economist would argue that a key cause is that the growth in the money supply (including credit) is growing at a faster rate than the level of production of goods and services.A Neo-Classical economist would argue that a key cause is that aggregate demand (expenditure) of goods and services is growing at a faster rate than the aggregate supply (production) of those goods and services.Question 4AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

Inflation occurs when:Question 9Select one:a.The stock of goods and services increases and the quantity of money in circulation decreases.b.The quantity of money in circulation rises faster than the stock of goods and services.c.Output increases faster than the money supply.d.The money supply decreases and the output increases.

The consequences of inflation can vary across different sectors and groups within an economy.Question 31Answera.Trueb.False

Which of the following statements regarding inflation is correct?Group of answer choicesInflation is a sustained rise in the general price levelInflation increases your purchasing powerInflation causes prices of goods and services to decreaseInflation increases the value of the dollar

Inflation can lead to a redistribution of income and wealth within a society.Question 19Answera.Trueb.False

Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext