Question 1

Disinflation means a decrease in:

Accepted Answer

A)  the rate of inflation. 
B)  the general level of prices in the economy. 
C)  the prices of all products in the economy. 
D)  the circular flow. 
A)  the rate of inflation. 
B)  the general level of prices in the economy. 
C)  the prices of all products in the economy. 
D)  the circular flow.

Question 2

The base year in the consumer price index (CPI)is:

Accepted Answer

A)  given a value of zero. 
B)  a year chosen as a reference for prices in all other years. 
C)  always the first year in the current decade. 
D)  established by law. 
A)  given a value of zero. 
B)  a year chosen as a reference for prices in all other years. 
C)  always the first year in the current decade. 
D)  established by law.

Question 3

Hyperinflation refers to a situation in which:

Accepted Answer

A)  prices are rising extremely rapidly. 
B)  prices are falling extremely rapidly. 
C)  the price level is extremely high. 
D)  the price level is extremely low. 
A)  prices are rising extremely rapidly. 
B)  prices are falling extremely rapidly. 
C)  the price level is extremely high. 
D)  the price level is extremely low.

Question 4

The real interest rate is the annual percentage amount of money that is earned on a sum loaned or deposited in a bank.

Accepted Answer

A) True 
 B)False

Question 5

During periods of inflation,all prices of all products are rising.

Accepted Answer

A) True 
 B)False

Question 6

When OPEC raised the price of oil,it created a:

Accepted Answer

A)  demand-pull inflation. 
B)  cost-push inflation. 
C)  demand-push inflation. 
D)  cost-pull inflation. 
E)  cost-push deflation. 
A)  demand-pull inflation. 
B)  cost-push inflation. 
C)  demand-push inflation. 
D)  cost-pull inflation. 
E)  cost-push deflation.

Question 7

Which of the following would understate the consumer price index?

Accepted Answer

A)  Substitution bias. 
B)  Deteriorating quality of products. 
C)  Improving quality of products. 
D)  Law of demand bias. 
A)  Substitution bias. 
B)  Deteriorating quality of products. 
C)  Improving quality of products. 
D)  Law of demand bias.

Disinflation means a decrease in:

The base year in the consumer price index (CPI)is:

Hyperinflation refers to a situation in which:

The real interest rate is the annual percentage amount of money that is earned on a sum loaned or deposited in a bank.

During periods of inflation,all prices of all products are rising.

When OPEC raised the price of oil,it created a:

Which of the following would understate the consumer price index?

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exam 13: Inflation

Disinflation means a decrease in:

The base year in the consumer price index (CPI)is:

Hyperinflation refers to a situation in which:

The real interest rate is the annual percentage amount of money that is earned on a sum loaned or deposited in a bank.

During periods of inflation,all prices of all products are rising.

When OPEC raised the price of oil,it created a:

Which of the following would understate the consumer price index?

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters