Question

1. Assume that you received a 3 percent increase in your normal wage. Over the year, inflation ran about 2.1 percent. Which of the following is true?

a) Your real wage increased.

b) Although your nominal wage rose, your real wage decreased

c) Both your nominal and real wages decreased

d) your nominal wage decreased

2. There are many measures of changes in price levels. which one of the following is the broadest measure of inflation?

a) the GDP Chain Price Index

b) the CPI

c) the PPI

d) the GDPI

3. A significant and continued increase in oil prices generally lead to a(n)

a)decrease cost-push inflation

b)increase cost-push inflation

c)decrease demand-pull inflation

d) increase demand-pull inflation

4. The Bureau of Labor Statistics indicates that the largest expense for the typical urban household is

a) Food and beverages

b) Housing

c) Transportation

d) Medical care

5. Demand-pull inflation is generally caused by

a) decreasing total spending (demand)

b) increasing totoal spending ( demand)

c) increasing costs of production (supply)

d) decreasing cost of production (supply)

6. We know full employment is on the macro-economic goals. however there is a risk of as a result of that full employment?

a) a lower rate of growth

b) hyperinflation

c) demand-pull inflation

d) cost-push inflation

7. what is most likely to occur during periods of hyperinflation? people...

a) spend money as fast as possible

b) lend money

c) save as much as possible

d) invest as much as possible

8. There are many measures of changes in price levels. Which price measure evaluates the changes in costs of inputs and production for a typical priducer?

a) the GDP Chain Price Index

b) the GDPI

c) the CPI

d) the PPI

9. Demand-pull inflation is caused by

a) increasing total spendjng

b) labor cost increase

c) minimum wage laws

d) tax increase

Answer 1