Economic Indicators and Price Level Changes Quiz

Test your knowledge of macroeconomics with questions on CPI, GDP, employment, inflation, and more. Explore economic indicators and their impacts.

#1

What does the Consumer Price Index (CPI) measure?

Inflation rate
Unemployment rate
Interest rates
Stock market performance
#2

Which economic indicator provides a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

Producer Price Index (PPI)
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Retail Sales Index
#3

In the context of inflation, what does the term 'hyperinflation' refer to?

Mild inflation
Rapid and excessive inflation
Deflation
Stable prices
#4

Inflation is generally expressed as a percentage increase in what?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment Rate
Stock Prices
#5

Which economic indicator measures the overall health of an economy by combining various indicators, including employment, production, income, and sales?

Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Producer Price Index (PPI)
Unemployment Rate
#6

What is the Phillips Curve used to illustrate in economics?

Relationship between inflation and unemployment
Demand and supply equilibrium
Government fiscal policy
International trade balance
#7

What is the purpose of the Producer Price Index (PPI) in economic analysis?

To measure inflation from the consumer perspective
To track changes in the prices received by producers
To calculate the unemployment rate
To assess changes in interest rates
#8

Which economic indicator provides information about the total value of goods and services produced within a country's borders during a specific time period?

Consumer Price Index (CPI)
Unemployment Rate
Gross Domestic Product (GDP)
Producer Price Index (PPI)
#9

Which of the following is a measure of the average productivity of labor in an economy?

Consumer Price Index (CPI)
Unemployment Rate
Labor Productivity
Gross Domestic Product (GDP)
#10

Which term is used to describe a prolonged period of economic decline, typically measured by a decrease in GDP for two consecutive quarters?

Inflation
Recession
Expansion
Stagflation
#11

Which of the following is an example of a leading economic indicator?

Consumer Price Index (CPI)
Unemployment Rate
Stock Prices
Gross Domestic Product (GDP)
#12

What is the primary function of the Employment Cost Index (ECI) in economic analysis?

To measure changes in the cost of living
To track changes in wages and benefits
To calculate GDP
To assess changes in interest rates
#13

Which economic indicator is often considered a lagging indicator of economic performance?

Consumer Price Index (CPI)
Unemployment Rate
Stock Prices
Gross Domestic Product (GDP)
#14

What is the relationship between the Producer Price Index (PPI) and the Consumer Price Index (CPI)?

PPI measures wholesale prices, while CPI measures retail prices
PPI measures international prices, while CPI measures domestic prices
PPI measures services prices, while CPI measures goods prices
PPI and CPI measure the same set of prices
#15

What is the purpose of the Leading Economic Index (LEI) in economic forecasting?

To measure current economic performance
To predict future economic trends
To calculate inflation rates
To track international trade balances
#16

What is the Fisher Effect in economics?

A theory of international trade
A monetary policy strategy
A theory related to interest rates and inflation
A fiscal policy concept

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