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(A) Cyclical (B) Structural (C) Frictionl (D) Terminal (E) A and B (5) Which sta

ID: 1106487 • Letter: #

Question

(A) Cyclical (B) Structural (C) Frictionl (D) Terminal (E) A and B (5) Which statement(s) is (are) correct about Inflation? (A) Measured by Consumer Price Index (B) Measured by Producer Price Index (C) Producer Price Index is a leading indicator (D) Real interest rate is a function of inflation (E) All of the above (6) In the context of Savings and Investment: (A) Total Savings equals Total Investment (B) Government Budget Surplus adds to the level of investment (C) Government Budget Deficit reduces the amount of loanable funds (D) Total Savings is sum of Private savings and Government savings (E) All of the above (7) Aggregate Demand:

Explanation / Answer

Answer(5)-

Option-(A),(B),(D)

Inflation is Measured by CPI,PPI

And real interest rate is the function of inflation.

CPI is leading indicator of inflation.

Answer (6)-

Option (a),(c),(d)

The government budget surplus add up in savings.