#1
What does the Consumer Price Index (CPI) measure?
Producer prices
Inflation in consumer goods and services
Stock market performance
Exchange rates
#2
What is the main purpose of the Producer Price Index (PPI)?
Measuring inflation in consumer goods
Assessing changes in producer costs
Monitoring stock market performance
Calculating exchange rates
#3
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP adjusts for inflation
Nominal GDP is adjusted for inflation, while real GDP includes inflation
Both nominal GDP and real GDP exclude inflation
Neither nominal GDP nor real GDP considers inflation
#4
What is the Quantity Theory of Money's explanation for inflation?
Inflation is caused by changes in aggregate supply
Inflation results from excessive money supply growth
Inflation is influenced by government fiscal policy
Inflation is driven by international trade imbalances
#5
Which index is commonly used to measure changes in the cost of living over time?
Consumer Price Index (CPI)
Producer Price Index (PPI)
Gross Domestic Product (GDP) deflator
Retail Price Index (RPI)
#6
Which of the following is a consequence of hyperinflation?
Stable economic growth
Increased purchasing power
Economic instability and uncertainty
Deflation
#7
What is the relationship between inflation and interest rates according to the Fisher effect?
Inflation and interest rates are unrelated
Higher inflation leads to higher nominal interest rates
Higher inflation leads to lower nominal interest rates
Interest rates have no impact on inflation
#8
In macroeconomics, what is the Phillips Curve used to illustrate?
The relationship between unemployment and inflation
The impact of government spending on GDP
The connection between exports and imports
The effect of interest rates on investment
#9
What is the meaning of the term 'core inflation'?
Inflation excluding volatile food and energy prices
Inflation including all goods and services
Inflation only in the core sectors of the economy
Inflation calculated without considering international trade
#10
What is the primary tool used by central banks to control inflation?
Fiscal policy
Foreign exchange interventions
Monetary policy
Government subsidies
#11
Which index measures the average change in prices received by domestic producers for their output?
Consumer Price Index (CPI)
Gross Domestic Product (GDP) deflator
Producer Price Index (PPI)
Retail Price Index (RPI)
#12
What is the difference between demand-pull inflation and cost-push inflation?
Both are types of demand-pull inflation
Both are types of cost-push inflation
Demand-pull is caused by increased production costs, while cost-push is caused by excessive demand
Demand-pull is caused by excessive demand, while cost-push is caused by increased production costs
#13
Which of the following is a common measure of inflation expectations?
Consumer Confidence Index (CCI)
Gross Domestic Product (GDP) growth rate
Unemployment rate
Real interest rates
#14
According to monetarist theory, what is the primary cause of inflation?
Government fiscal policy
Changes in aggregate supply
Excessive money supply growth
External shocks in the global economy
#15
Which price index is often used to adjust wages for inflation?
Consumer Price Index (CPI)
Producer Price Index (PPI)
Gross Domestic Product (GDP) deflator
Retail Price Index (RPI)