Inflation and Economic Indicators Quiz

Test your knowledge on inflation and economic indicators with this comprehensive macroeconomics quiz. Explore CPI, Phillips curve, hyperinflation, and more.

#1

Which of the following is a measure of inflation?

GDP growth rate
Consumer Price Index (CPI)
Unemployment rate
Trade balance
#2

What does CPI stand for?

Consumer Product Index
Consumer Price Increase
Consumer Price Index
Cost Price Index
#3

What is 'core inflation'?

Inflation that is not affected by seasonal factors
Inflation measured without volatile food and energy prices
Inflation that includes all goods and services
Inflation measured in developing countries
#4

Which economic indicator is often considered a precursor to inflation?

Producer Price Index (PPI)
Retail Sales
Industrial Production
Housing Starts
#5

What is the Phillips curve relationship?

Inverse relationship between inflation and unemployment
Direct relationship between inflation and unemployment
Inverse relationship between inflation and GDP growth
Direct relationship between inflation and GDP growth
#6

Which of the following is a cost-push factor contributing to inflation?

Increase in consumer demand
Rise in production efficiency
Rise in wages
Decrease in oil prices
#7

What is 'demand-pull' inflation?

Inflation caused by a decrease in aggregate demand
Inflation caused by an increase in aggregate demand
Inflation caused by a decrease in the money supply
Inflation caused by a decrease in consumer demand
#8

What is the main effect of high inflation on borrowers and lenders?

Borrowers benefit, lenders suffer
Lenders benefit, borrowers suffer
Both borrowers and lenders benefit
Both borrowers and lenders suffer
#9

What is the 'real interest rate'?

Nominal interest rate minus expected inflation rate
Nominal interest rate plus expected inflation rate
Nominal interest rate minus actual inflation rate
Nominal interest rate plus actual inflation rate
#10

What is the 'Fisher effect'?

A theory suggesting that nominal interest rates adjust to expected inflation rates
A policy aimed at stabilizing the price of fish
A monetary policy tool used to control inflation
An economic phenomenon observed in fish markets
#11

What is 'velocity of money'?

The rate at which money supply increases
The speed at which money circulates in the economy
The rate of inflation caused by excessive money printing
The amount of money held in reserve by banks
#12

What is the 'Taylor rule' in economics?

A policy to regulate international trade
A guideline for monetary policy based on inflation and economic growth
A theory explaining consumer behavior during recessions
A formula to calculate inflation-adjusted GDP

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