AP Econ Friday Quiz 3Q8W

Who is most likely to be hurt by inflation?

• someone who borrowed money

• a retiree on a fixed income

• a business owner

• the U.S. government

Which of the following groups suffer from high inflation?

• Borrowers

• Lenders

• Taxpayers

• Property Investors

When inflation is high the _______________of the dollar decreases.

• cost

• purchasing power

• importance

• validity

The percentage change in the price level from a previous period is the ...

• Unemployment rate

• Inflation rate

• GDP

• CPI

The Consumer Price Index (CPI)

• Measures the price change of the G & S bought by a typical consumer

• Is the best measure of standard of living

• Measures the percentage change in price level from one period to another

• Is the measure of rates across time

The market basket cost of 2016 is $100,000. If the market basket for 2017 is $200,000 and 2016 is our base year, what is the CPI for 2016?

• 100

• 140

• 200

• 80

The market basket cost of 2016 is $100,000. If the market basket for 2017 is $200,000 and 2016 is our base year, what is the CPI for 2017?

• 100

• 140

• 200

• 80

The market basket cost of 2016 is $100,000. If the market basket for 2017 is $200,000 and 2016 is our base year, what is the inflation rate from 2016 to 2017?

• 100%

• 140%

• 200%

• 80%

_____________ inflation is described as prices rising due to increases in production costs of goods and services.

• Nominal value

• Demand Pull

• Cost Push

• Real value

_____________ inflation is described as prices rising because of excess demand.

• Nominal value

• Demand Pull

• Cost Push

• Real value