ACE Macroeconomics Unit 2 Exam

The Consumer Price Index (CPI) is best used to determine

• the Dow Jones Index.
• the rate of inflation.
• the unemployment rate.
• currency exchange rates.

Gross Domestic Product

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

When the actual inflation rate is greater than the anticipated inflation rate, which of the following is most likely to suffer?

• Those who lend at a fixed interest rate
• Those who borrow at a fixed interest rate
• Retired persons with cost-of-living adjustment in their benefits
• Employers who hire workers with longterm labor contracts

If you live on a fixed income, how will you be affected by inflation.

• You are hurt because your purchasing power has decreased.
• You are helped because your purchasing power has increased.
• You are helped because interest rates rise.
• You are hurt because interest rates rise.

A general rise in overall prices is called:

• Deflation
• Inflation
• Consumer Price Index
• Federal Reserve

_________ is when prices are still rising, just at a slower pace.

• Hyperinflation

• Disinflation

• Deflation

• Stagflation

Which of the following is NOT one of the components of Gross Domestic Product (GDP)?

• Consumption

• Producer Price Index

• Government spending

• Investment

Which of the followings is NOT one of the forms of inflation?

• Hyperinflation

• Disinflation

• Stagflation

• Pre-inflation

An index that measures the prices of a market basket of goods that typical consumers purchase.

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

GDP that is adjusted for inflation is called

• real GDP
• nominal GDP
• price level
• net national product