Economic Indicators and Price Level Changes Quiz

CPI measures the average change in prices paid by consumers for goods and services, indicating inflation.

CPI reflects changes in the cost of a typical basket of goods and services purchased by urban consumers.

Hyperinflation signifies an extremely high and uncontrolled inflation rate.

Inflation is commonly measured as a percentage increase in the Consumer Price Index.

GDP measures the total value of goods and services produced within a country's borders, reflecting economic health.

The Phillips Curve depicts the inverse relationship between inflation and unemployment rates.

PPI monitors changes in prices received by producers for goods and services, indicating inflationary pressures.

GDP measures the overall economic output within a country.

Labor Productivity gauges the average output of goods and services per unit of labor input.

A recession is characterized by a sustained economic downturn, often indicated by two consecutive quarters of negative GDP growth.

Leading indicators, like stock prices, signal future economic trends before other indicators.

ECI monitors changes in the costs of labor, including wages and benefits, reflecting labor market conditions.

CPI tends to lag behind economic changes, reflecting past inflation and economic conditions.

PPI tracks wholesale prices paid by producers, whereas CPI monitors retail prices paid by consumers.

LEI is designed to forecast future economic activity by identifying leading indicators.

The Fisher Effect posits a relationship between nominal interest rates, real interest rates, and expected inflation.