Measuring Changes in Cost and Price Levels Quiz Test your knowledge of inflation, deflation, GDP deflator, and more with this macroeconomics quiz. Get ready for questions on CPI, PPI, inflation rates, and economic activity.
#1
GDP
CPI
Unemployment rate
Interest rate
#2
To measure changes in the cost of goods and services purchased by consumers over time
To measure changes in the cost of production inputs
To measure changes in stock prices
To measure changes in corporate profits
#3
#4
#5
To maintain a high inflation rate
To eliminate inflation entirely
To keep inflation at a stable and low level
To cause hyperinflation
#6
Finished goods
Intermediate goods
Unemployment rate
Crude materials
#7
Inflation decreases the purchasing power of money
Inflation increases the purchasing power of money
Inflation has no effect on the purchasing power of money
Inflation stabilizes the purchasing power of money
#8
A period of high inflation and low unemployment
A period of low inflation and high unemployment
A period of high inflation and high economic growth
A period of low inflation and high economic growth
#9
Increase in demand
Increase in production capacity
Cost-push factors
Monetary factors
#10
Inflation and interest rates have a direct relationship
Inflation and interest rates have an inverse relationship
Inflation and interest rates are unrelated
Inflation and interest rates fluctuate independently
#11
A general increase in the price level of goods and services
A decrease in the rate of inflation
A sustained decrease in the average price level of goods and services
An increase in the value of money relative to goods and services
#12
(Current CPI - Previous CPI) / Previous CPI
(Current CPI - Previous CPI) / Current CPI
(Previous CPI - Current CPI) / Current CPI
(Previous CPI - Current CPI) / Previous CPI
#13
Real values account for inflation, while nominal values do not
Nominal values account for inflation, while real values do not
Real values are adjusted for inflation, while nominal values are not
Nominal values are adjusted for inflation, while real values are not
#14
Hyperinflation is a slower and steadier increase in prices
Hyperinflation is a sudden and extreme increase in prices
Hyperinflation is a decrease in prices
Hyperinflation is a temporary phenomenon
#15
Decrease in imports, increase in exports
Increase in imports, decrease in exports
Decrease in imports, decrease in exports
Increase in imports, increase in exports
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