Inflation and GDP

Which macroeconomic measurement tool is used to determine how many people can find jobs?

• GDP

• CPI

• Unemployment Rate

• Fiscal Policy

Which macroeconomic measurement tool is used to determine how much an economy is growing (or shrinking)?

• GDP

• CPI

• Unemployment Rate

• Fiscal Policy

Which macroeconomic measurement tool is used to determine the actual real value of our money?

• GDP

• CPI

• Unemployment Rate

• Fiscal Policy

What is the name for the price of a group of goods purchased by an average urban consumer?

• GDP

• CPI

• Market Basket

• Urban Wealth Index

When the value of your money increases

• Inflation

• Deflation

• Disinflation

• Monetary Policy

When the value of your money decreases

• Inflation

• Deflation

• Disinflation

• Monetary Policy

High Inflation + High Unemployment

• Recession

• Expansion

• Deflation

• Stagflation

Year 1 CPI = 100. Year 2 CPI = 150. What is the inflation rate from year 1 to year 2?

• 150%

• 100%

• 25%

• 50%

What is the difference between Real and Nominal GDP

• Real GDP accounts for inflation

• Nominal GDP is only counted during stagflation

• Nominal GDP is used to compare productivity more accurately

• Real GDP uses the dollars of the year being analyzed

Base Year MB = 5. Current Year MB = 10. What is the CPI for the current Year?

• 5

• 2

• 100

• 200