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Inflation Quiz 7 (25 MCQs)

Quiz Instructions:

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1. To calculate the future cost of a product or service due to inflation, people need to know everything except the
2. In June, the average U.S. household needed to spend how much more a month than it did last year to pay for the same goods and services?
3. The government is implementing VAT on foreign luxury foods items. This measure would best reduce:
4. The Okun's law states that for every 1% increase in the unemployment, there is a:
5. A general rise in the level of prices over time
6. If nominal out is $ 100 billion dollars while real output is $ 90 then the GDP deflator is
7. If the cost of a market basket is $ 200 in Year 1 and $ 230 in Year 2, the price index for Year 2 with a Year 1 base is:
8. The purpose of this policy is to
9. What is the current inflation rate in Hong Kong (August 2020)
10. What is missing from this essay
11. Wages rise by 3%, when inflation is 7%. Real wages
12. When inflation is high the _____ of the currency decreases
13. When inflation is high, the loss of buying power especially hurts those
14. Food, clothes and shelter are all considered to be _____
15. What is not a possible cause of cost-push inflation? MAY/JUNE 2014 12
16. The CPI is a weighted index, this means
17. Hyperinflation is typically caused by
18. If Shermania's GDP in 2014 was $ 4, 000 and it was $ 5, 000 in 2015, what is the % change in GDP?
19. The first year used, or starting point, for a price index
20. What is the Central Bank's primary goal?
21. May lead to an increase in the value of money
22. The country of Galaland produces the following products:2000Bananas-10 at $ 3Apples-10 at $ 2Bread-15 at $ 82001Bananas-10 at $ 5Apples-10 at $ 2Bread-20 at $ 8What is the nominal GDP for 2000?
23. _____ refers to a decrease in price level. E.g. from 1000 to 990
24. Which type of inflation is correct?
25. If there's too much money in circulation, it could lead to inflation
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