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- Multiple ChoicePlease save your changes before editing any questions.
Most countries try to maintain an inflation rate of ______ per year.
One percent or less
Two to three percent
Four to five percent
Six to seven percent
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following types of inflation interferes with a company’s ability to plan for the future?
Expected inflation
Unexpected inflation
Creeping inflation
Galloping inflation
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following terms is also known as total output?
Price index
Price level
Aggregate demand
Aggregate supply
- Multiple ChoicePlease save your changes before editing any questions.
The _______ considers the weighted averages of a group of consumer goods and services.
Consumer price index
Aggregate supply
Producer price index
Aggregate demand
- Multiple ChoicePlease save your changes before editing any questions.
_________ is a decrease in the rate of inflation.
Hyperinflation
Disinflation
Deflation
Stagflation
- Multiple ChoicePlease save your changes before editing any questions.
__________ refers to a decrease in price level.
Hyperinflation
Disinflaation
Deflation
Stagflation
- Multiple ChoicePlease save your changes before editing any questions.
__________ occurs in the economy when unemployment and inflation are both high.
Hyperinflation
Disinflation
Deflation
Stagflation
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following explains the relations between the average price of aggregate supply and the quantity demanded?
Aggregate demand
Price level
Producer price index
Consumer price index
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is NOT one of the components of Gross Domestic Product (GDP)?
Consumption
Producer Price Index
Government spending
Investment
- Multiple ChoicePlease save your changes before editing any questions.
Which of the followings is NOT one of the forms of inflation?
Hyperinflation
Disinflation
Stagflation
Pre-inflation
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following types of inflation occurs when sales drop and retailers cannot place higher prices on customers?
Deflation
Disinflation
Hyperinflation
Pre-inflation
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Demand-pull inflation
Cost-push inflation
Demand-push inflation
Cost-pull inflation
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following types of inflation involves the government using financial stimuli to increase the country’s output?
Deflation
Disinflation
Reflation
Hyperinflation
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following interest rates is expressed in terms of current dollars as the percentage of the amount loaned?
Simple interest rate
Nominal interest rate
Real interest rate
Compound interest rate
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is NOT one of the constants the aggregate supply curve assumes?
State of technology
Resource prices
Rules providing production incentives
Rate of production