Question 1

The phrase 'too much money chasing too few goods' describes which type of inflation?

Accepted Answer

A) Demand-supply inflation. 
B) Demand-push inflation. 
C) Demand-pull inflation. 
D) Demand-excess inflation. 
A) Demand-supply inflation. 
B) Demand-push inflation. 
C) Demand-pull inflation. 
D) Demand-excess inflation.

Question 2

The real interest rate is defined as the:

Accepted Answer

A) actual interest rate. 
B) fixed rate on consumer loans. 
C) nominal interest rate minus the inflation rate. 
D) expected interest rate minus the inflation rate. 
E) maximum interest rate. 
A) actual interest rate. 
B) fixed rate on consumer loans. 
C) nominal interest rate minus the inflation rate. 
D) expected interest rate minus the inflation rate. 
E) maximum interest rate.

Question 3

A person pays cash for a house in 1990 for $100 000 and sells it in 2000 for $150 000.Over the same period the CPI has risen from its base index to 200.In terms of this asset,the purchasing power of this person:

Accepted Answer

A) has increased. 
B) has decreased. 
C) has remained unchanged. 
D) is indeterminate. 
A) has increased. 
B) has decreased. 
C) has remained unchanged. 
D) is indeterminate.

Question 4

The consumer price index (CPI)compares the prices of:

Accepted Answer

A) all goods and services in the economy compared to the prices of those goods and services in a base year. 
B) consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year. 
C) producer goods and services that are made for consumers to the prices of those goods and services in a base year. 
D) goods and services that are purchased by producers to the prices of those goods and services in a base year. 
E) goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year. 
A) all goods and services in the economy compared to the prices of those goods and services in a base year. 
B) consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year. 
C) producer goods and services that are made for consumers to the prices of those goods and services in a base year. 
D) goods and services that are purchased by producers to the prices of those goods and services in a base year. 
E) goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year.

Question 5

If the inflation rate rises unexpectedly,the winners will be:

Accepted Answer

A) lenders and borrowers. 
B) lenders. 
C) borrowers. 
D) only those who invested in real estate. 
A) lenders and borrowers. 
B) lenders. 
C) borrowers. 
D) only those who invested in real estate.

Question 6

Demand-pull inflation is due to:

Accepted Answer

A) minimum wage laws. 
B) labour cost increases. 
C) excess total spending. 
D) tax increases. 
A) minimum wage laws. 
B) labour cost increases. 
C) excess total spending. 
D) tax increases.

Question 7

The CPI (using a 1982 base year)for 1951 is 26.Suppose a household's annual take home pay in 1951 was $8320.What would be an equivalent home pay in 1982?

Accepted Answer

A) $10 483. 
B) $21 632. 
C) $23 680. 
D) $32 000. 
A) $10 483. 
B) $21 632. 
C) $23 680. 
D) $32 000.

Question 8

Cyclical unemployment is caused by:

Accepted Answer

A) shifts in the job skills required in the economy. 
B) seasonal layoffs. 
C) declines in real GDP. 
D) cyclical changes in the job skills among workers. 
A) shifts in the job skills required in the economy. 
B) seasonal layoffs. 
C) declines in real GDP. 
D) cyclical changes in the job skills among workers.

Question 9

The lack of jobs due to the business cycle is called:

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) cost-push unemployment. 
D) cyclical unemployment. 
E) transitory unemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) cost-push unemployment. 
D) cyclical unemployment. 
E) transitory unemployment.

Question 10

The relatively high unemployment in many European countries has been attributed at least in part to:

Accepted Answer

A) a more flexible labour market. 
B) higher inflation. 
C) low wages. 
D) a rigid labour market. 
E) high economic growth. 
A) a more flexible labour market. 
B) higher inflation. 
C) low wages. 
D) a rigid labour market. 
E) high economic growth.

Question 11

Cost-push inflation is:

Accepted Answer

A) only due to an increase in the cost of raw materials. 
B) due to a reduction in demand. 
C) only due to an increase in the cost of borrowing. 
D) due to an increase in the cost of any inputs used in production. 
A) only due to an increase in the cost of raw materials. 
B) due to a reduction in demand. 
C) only due to an increase in the cost of borrowing. 
D) due to an increase in the cost of any inputs used in production.

Question 12

An example of cyclical unemployment is a/an:

Accepted Answer

A) textile worker permanently laid off due to jobs lost to imports. 
B) auto worker who is temporarily laid off due to a decline in the demand for cars. 
C) engineer permanently laid off due to advances in technology. 
D) computer programmer who leaves one job and accepts a new job. 
A) textile worker permanently laid off due to jobs lost to imports. 
B) auto worker who is temporarily laid off due to a decline in the demand for cars. 
C) engineer permanently laid off due to advances in technology. 
D) computer programmer who leaves one job and accepts a new job.

Question 13

Cost-push inflation is due to:

Accepted Answer

A) labour cost decreases. 
B) higher spending. 
C) raw material cost decreases. 
D) an increase in input prices. 
A) labour cost decreases. 
B) higher spending. 
C) raw material cost decreases. 
D) an increase in input prices.

Question 14

The CPI is used to determine:

Accepted Answer

A) how higher quality products increase the wellbeing of consumers. 
B) how the cost of living changed from one period to another. 
C) the changes in prices of all consumer goods and services. 
D) how changing prices affect the export of goods and services. 
A) how higher quality products increase the wellbeing of consumers. 
B) how the cost of living changed from one period to another. 
C) the changes in prices of all consumer goods and services. 
D) how changing prices affect the export of goods and services.

Question 15

Nominal income is:

Accepted Answer

A) the actual number of dollars received over the period of time, adjusted for changes in the CPI. 
B) the actual number of dollars received over the period of time. 
C) the actual number of dollars received over the period of time, adjusted for changes in the GDP. 
D) the real number of dollars received over the period of time. 
A) the actual number of dollars received over the period of time, adjusted for changes in the CPI. 
B) the actual number of dollars received over the period of time. 
C) the actual number of dollars received over the period of time, adjusted for changes in the GDP. 
D) the real number of dollars received over the period of time.

Question 16

Workers who may be between jobs are considered:

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) unemployable. 
E) discouraged workers. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) unemployable. 
E) discouraged workers.

Question 17

In Australia,the natural rate of unemployment has:

Accepted Answer

A) decreased significantly since the 1960s. 
B) remained constant over the past 50 years. 
C) increased since the 1960s. 
D) been above 10 per cent since the 1991 recession. 
A) decreased significantly since the 1960s. 
B) remained constant over the past 50 years. 
C) increased since the 1960s. 
D) been above 10 per cent since the 1991 recession.

Question 18

One way the consumer price index (CPI)differs from the GDP chain price index is that it:

Accepted Answer

A) is based on all final goods and services. 
B) uses only current-year quantities. 
C) includes preferences of all consumers. 
D) includes services. 
E) includes purchases of items bought by typical urban consumers. 
A) is based on all final goods and services. 
B) uses only current-year quantities. 
C) includes preferences of all consumers. 
D) includes services. 
E) includes purchases of items bought by typical urban consumers.

Question 19

Which of the following categories of people are in the labour force?

Accepted Answer

A) The armed forces. 
B) Household workers. 
C) Students. 
D) Unemployed. 
A) The armed forces. 
B) Household workers. 
C) Students. 
D) Unemployed.

Question 20

An increase in the average price level of goods and services is called:

Accepted Answer

A) deflation. 
B) disinflation. 
C) inflation. 
D) cost-push deflation. 
A) deflation. 
B) disinflation. 
C) inflation. 
D) cost-push deflation.

The phrase 'too much money chasing too few goods' describes which type of inflation?

The real interest rate is defined as the:

A person pays cash for a house in 1990 for $100 000 and sells it in 2000 for $150 000.Over the same period the CPI has risen from its base index to 200.In terms of this asset,the purchasing power of this person:

The consumer price index (CPI)compares the prices of:

If the inflation rate rises unexpectedly,the winners will be:

Demand-pull inflation is due to:

The CPI (using a 1982 base year)for 1951 is 26.Suppose a household's annual take home pay in 1951 was $8320.What would be an equivalent home pay in 1982?

Cyclical unemployment is caused by:

The lack of jobs due to the business cycle is called:

The relatively high unemployment in many European countries has been attributed at least in part to:

Cost-push inflation is:

An example of cyclical unemployment is a/an:

Cost-push inflation is due to:

The CPI is used to determine:

Nominal income is:

Workers who may be between jobs are considered:

In Australia,the natural rate of unemployment has:

One way the consumer price index (CPI)differs from the GDP chain price index is that it:

Which of the following categories of people are in the labour force?

An increase in the average price level of goods and services is called:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 13: Inflation and unemployment

The phrase 'too much money chasing too few goods' describes which type of inflation?

The real interest rate is defined as the:

A person pays cash for a house in 1990 for $100 000 and sells it in 2000 for $150 000.Over the same period the CPI has risen from its base index to 200.In terms of this asset,the purchasing power of this person:

The consumer price index (CPI)compares the prices of:

If the inflation rate rises unexpectedly,the winners will be:

Demand-pull inflation is due to:

The CPI (using a 1982 base year)for 1951 is 26.Suppose a household's annual take home pay in 1951 was $8320.What would be an equivalent home pay in 1982?

Cyclical unemployment is caused by:

The lack of jobs due to the business cycle is called:

The relatively high unemployment in many European countries has been attributed at least in part to:

Cost-push inflation is:

An example of cyclical unemployment is a/an:

Cost-push inflation is due to:

The CPI is used to determine:

Nominal income is:

Workers who may be between jobs are considered:

In Australia,the natural rate of unemployment has:

One way the consumer price index (CPI)differs from the GDP chain price index is that it:

Which of the following categories of people are in the labour force?

An increase in the average price level of goods and services is called:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters