Inflation is defined as a sustained increase in ___ within an economy.

Overall price levels

What is the primary cause of demand-pull inflation?

Excessive demand in relation to supply

Creeping inflation typically occurs at a rate of ___ per annum.

2% to 2.5%

Fill in the blank: Cost-push inflation is driven by increased ___ of production.

Costs

What are the two main types of inflation discussed in the content?

Demand-pull inflation and cost-push inflation

Fill in the blank: Hyperinflation can lead to price increases that are ___ or even a hundredfold within a month.

Astronomical

What role does government expenditure play in demand-pull inflation?

Increased government spending boosts employment and income, leading to higher demand for goods and services.

Fill in the blank: A significant rise in ___ can lead to cost-push inflation as businesses pass on their increased labor costs to consumers.

Wages

Fill in the blank: Supply chain disruptions can be caused by events such as natural disasters, geopolitical tensions, or ___.

Pandemics

Multiple Choice: Which of the following is NOT a factor contributing to cost-push inflation? 
A) Rising wages 
B) Increased productivity
C) Higher taxes 
D) Increased raw material costs

B) Increased productivity

Fill in the blank: People on ___ incomes are severely affected during periods of rising prices.

Fixed

Multiple Choice: During inflation, which group tends to benefit because they repay less in real terms than borrowed?

Borrowers

Fill in the blank: Inflation leads to a decline in ___ income.

Real