Diff 1 A Head 135 Measuring Inflation AACSB Analytic thinking 120 Inflation is

Diff 1 a head 135 measuring inflation aacsb analytic

This preview shows page 2 - 4 out of 4 pages.

Diff: 1
Background image
A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 120) Inflation is an increase in the A) overall level of economic activity. B) rate of growth of GDP. C) average hourly wage rate. D) general price level in the economy. Answer: D Diff: 1 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 121) Which of the following is a correct description of inflation? Diff: 2 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 122) The inflation rate is measured as the Diff: 2 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 123) The broadest measure of the price level which includes all final goods and services is the Diff: 1 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking
Background image
124) The most widely used measure of inflation is based on which of the following price indices? A) The producer price index. B) The consumer price index. C) The GDP deflator. D) The wholesale price index. Answer: B Diff: 1 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 125) Which of the following is the smallest portion of the market basket of goods that makes up the CPI? Diff: 1 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 126) Which of the following is the largest portion of the market basket of goods that makes up the CPI? Diff: 1 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 127) The formula for calculating the CPI is Diff: 1 A-Head 13.5: Measuring Inflation AACSB: Analytic thinking 128) Suppose an economy has only three goods, and the typical family purchases the
Background image

You've reached the end of your free preview.

Want to read all 4 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture