Business revision

Inflation is

• how fast prices are rising in the economy

• how fast unemployment is rising in the economy

• how fast economic growth is occurring

• how fast stock prices are rising

Inflation is generally calculated

• annually

• monthly

• weekly

• daily

The inflation rate is calculated as

• CPI - Prior period CPI x 100

• CPI - Prior period CPI divided by Prior period CPI x 100

• CPI + Prior period CPI divided by 100

• CPI + Prior period CPI divided by CPI x 100

CPI stands for

• Consumer Price Inflation

• Consumer Product Inflation

• Consumer Product Index

• Consumer Price Index

Unemployment is

• everyone in the population who does not have a job

• everyone in the population who does not have a job but wants to work

• everyone in population between the ages of 12 and 75 who does not have a job

• everyone in the population who is retired

GDP stands for

• Gross Domestic Pricing

• Gross Domestic Product

• General Domestic Product

• General Domestic Pricing

If the economy is growing then GDP is

• decreasing every year

• remaining the same every year

• increasing every year

• is unaffected

For GDP = C + I + G + (X - M)

• C = consumption spending

• C = consumers

• C = competition

• C = consumer debt

Demand led inflation is

• decrease in demand for goods and services, causing prices to fall

• decrease in demand for goods and services, causing prices to rise

• increase in demand that exceeds level of goods and services, so prices rise

• increase in demand that exceeds level of goods and services, so prices fall

Cost-push inflation is an

• increase in cost of production, so prices fall

• increase in cost of production, so prices rise

• decrease in cost of production, so prices fall

• decrease in cost of production, so prices rise