M2-23 - Chapter 23 7 Inflation and Deflation 1 BM23 C Inflation 2 By inflation economists usually mean an increase in the(a money supply(b aggregate

M2-23 - Chapter 23 7 Inflation and Deflation 1 BM23 C...

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Chapter23 / 7Inflation and Deflation1)BM23 \ C \\ Inflation \ 2 \\By inflation, economists usually mean an increase in the:(a) money supply.(b) aggregate wage level.(c) average price level.(d) price level greater than the increase in real output.2)BM23 \ D \\ Inflation \ 2 \\An increase in the price of good X is inflationary only if it is accompanied by:Macroeconomic financial data not adjusted for changes in purchasing power across time are usually reported in:A doubling of nominal values for all products, resources, assets, and liabilities would not increase.The process during which average prices fall is referred to as:(a) disinflation.(b) revaluation.(c) deflation.(d) recession.Ralph ByrnsChapter 23 / 7: Inflation and DeflationTest Bank Two1
6)BM23 \ C \\ Deflation \ 3 \\Examples of periods of deflation would not include:7)BM23 \ C \\ Disinflation \ 1 \\Disinflation is a process during which the:In calculating a price index with a base period value of 50 and a current period value of 25:9)BM23 \ C \\ Index Numbers \ 2 \\If the consumer price index rose from 100 to 112 in one year, the annual inflation rate would be:(a) 224 %.(b) 112 %.(c) 12 %.(d) 8 %.

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