econ 10/12

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?

• Increase
• Decrease
• No change

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

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

Demand-Pull inflation can be describes as too many _________ chasing too few __________

• jobs, workers
• consumers, producers
• dollars, goods

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

What 2 types of inflation are there?

• demand pull and cost push
• demand pull and supply glut
• supply glut and demand side
• supply inflation and demand inflation

GDP that is adjusted for inflation

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

Gross Domestic Product includes the market value of all FINAL goods and services produced within a country during a given period of time.

• True

• False

Intermediate goods, used goods, and illegal goods are ____________ in a countries Gross Domestic Product(GDP).

• included

• excluded

Over half of the spending of the _______________ include programs like Medicare, Social Security & Unemployment.

• Household Consumption/ C

• Business Investment/ I

• Government Purchases/ G

• Net Exports/ NX