#1
Which of the following is a measure of inflation?
Consumer Price Index (CPI)
ExplanationIndicator tracking changes in prices of goods and services
#2
What does CPI stand for?
Consumer Price Index
ExplanationIndex reflecting average price changes over time
#3
What is 'core inflation'?
Inflation measured without volatile food and energy prices
ExplanationInflation rate excluding volatile goods
#4
Which economic indicator is often considered a precursor to inflation?
Producer Price Index (PPI)
ExplanationIndicator gauging price changes for producers
#5
What is the Phillips curve relationship?
Inverse relationship between inflation and unemployment
ExplanationHistorical inverse correlation between inflation and joblessness
#6
Which of the following is a cost-push factor contributing to inflation?
Rise in wages
ExplanationIncrease in labor costs leading to price hikes
#7
What is 'demand-pull' inflation?
Inflation caused by an increase in aggregate demand
ExplanationPrice increases due to excessive demand
#8
What is the main effect of high inflation on borrowers and lenders?
Lenders benefit, borrowers suffer
ExplanationImpact on loan repayment favoring lenders
#9
What is the 'real interest rate'?
Nominal interest rate minus expected inflation rate
ExplanationActual interest rate accounting for inflation
#10
What is the 'Fisher effect'?
A theory suggesting that nominal interest rates adjust to expected inflation rates
ExplanationTheory on nominal interest rate adjustments
#11
What is 'velocity of money'?
The speed at which money circulates in the economy
ExplanationRate of money turnover within the economy
#12
What is the 'Taylor rule' in economics?
A guideline for monetary policy based on inflation and economic growth
ExplanationPolicy framework balancing inflation and growth