Economics Inflation and Unemployment

Which is the correct term for a fall in the rate of inflation?

• Deflation

• Reflation

• Disinflation

• Stagflation

What is meant by the term 'hyperinflation'?

• The rise in GDP following the end of a recession

• A continuous general rise in prices

• A general fall in prices

• Very high levels of inflation

The Consumer Price Index. If the price index is 100 today and 105 in one year's time, what will the inflation rate be?

• 5%

• -5%

• 10%

• 105%

A person who is looking for full-time work, but who only works part-time is described as .......

• Not a member of the workforce

• Underemployed

• Unemployed

• Employed

Which is the following people is a member of the labour force?

• A retired person

• A person of working age who has given up looking for work

• A person without a job who is actively seeking work

• A child at school

What is a claimant count?

• The number of people claiming unemployment benefit

• The number of adults of working age without a job

• The number of people in employment

• The number of retired people

Identify 2 reasons why the claimant count may NOT be an accurate measure of unemployment

• Governments measure unemployment

• Not everyone claims

• Claimants are unemployed

• Fraud

When demand-pull inflation occurs which way does the aggregate demand [AD] curve shift?

• It doesn't shift

• It shifts to the right [upwards]

• It shifts to the left [downwards]

When cost-push inflation occurs what happens to the SRAS curve in the classical model?

• It shifts to the left

• It doesn't change

• It shifts to the right

Which of the following factors will cause demand-pull inflation?

• A fall in government spending

• A fall in interest rates

• An increase in taxation

• Falling consumer confidence