12 Updated Free CFA Level 1 Mock Exam Questions and Answers on Economics

Not enough time spent for the economics courses or not enough money to pay for it? Do not worry because our 12 Updated Free CFA Level 1 Mock Exam Questions and Answers on Economics will help tackle with your problem. To become a CFA charter holder, you need a huge commitment as well as money. Online practice is one of the most effective learning method to optimize focus of the curriculum, and learners can fit learning time into their schedules better. Through many multiple choice questions with instant answers, basic economics concepts are showcased accessibly and understandably so that you can grasp and apply all of them into exercises before the exam. Click now to discover all the significant material for the upcoming exam and remember submit all to check your answers. Hope you fancy CFA practice sample questions!
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An inflation that is caused by raise in costs is called 'demand pullout.

• Sources of inflation
• Reasons for inflation
• Cost push inflation
• Demand pull inflation

Due to increase in aggregate demand.

• Reasons for inflation
• Demand pull inflation
• Cost push inflation
• Sources of inflation

Relationship between inflation and unemployment1. Expected inflation rate.2. Natural unemployment rate

• Short run Phillips curve
• Cost push inflation
• Long run Phillips curve
• Phillips Curve

Quantity of money grows faster than GDP.

• Demand pull inflation
• Cost push inflation
• Sources of inflation
• Reasons for inflation

Since aggregate demand, is due to higher demand compared to cost push, which is due to higher cost of raw materials.Cost push inflation, may cause more unemployment.

• Sources of cost push inflation
• Pros of Aggregate demand inflation
• Sources of inflation
• Reasons for demand pull inflation

Relationship between inflation and unemployment when the inflation rate equals expected inflation rate.

• Short run Phillips curve
• Phillips Curve
• Cost push inflation
• Long run Phillips curve

1. Increase in wages due to full employment.2. Increase in prices of raw materials.

• Cost push inflation
• Reasons for inflation
• Sources of inflation
• Sources of cost push inflation

Relationship between inflation and unemployment.

• Long run Phillips curve
• Phillips Curve
• Misery Index
• Short run Phillips curve

Inflation Rate + Unemployment rate

• Cost push inflation
• Inflation
• Phillips Curve
• Misery Index

When inflation goes higher, then we pay higher prices

• Inflation
• Sources of inflation
• Cost push inflation
• Misery Index

Demand pull inflationCost push inflation.

• Sources of cost push inflation
• Sources of inflation
• Reasons for inflation
• Cost push inflation

1. Tax cut.2. Government spending.3. Cut in interest rate.4. Increase in exports.

• Demand pull inflation
• Sources of cost push inflation
• Reasons for demand pull inflation
• Reasons for inflation