Economic Indicator practice

When Inflation occurs,

• Price decreases in the economy
• The purchasing power of money decreases in the economy
• The dollar appreciates on foreign exchange markets
• Basic necessities become cheaper

Hyper inflation occurs when

• Real GDP decreases at the same time inflation is increasing
• Unemployment, Real GDP, and inflation decrease together
• Real GDP increases at the same time inflation is decreasing
• Inflation increases by a large amount in a short time period.

Comparing the cost of goods from year to year allows an economist to determine _______.

• The Producer Price Index
• The Consumer Price Index
• The current direction of GDP
• How much unemployment is in the economy

If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the

• GDP
• Business cycle
• CPI
• National Dept

Money loses its value when it

• It becomes too plentiful
• becomes too portabale
• is divisible
• is durable

A general increase in prices is called

• inflation

• purchasing power

• the CPI

• a price index

The inflation rate is

• the ability to buy goods or services

• measured in fixed dollars

• not an important measure to economists

• the percentage change in prices over time

Inflation reduced people's purchasing power because

• the same amount of money buys ore goods and services

• the same amount of money buys fewer goods and services

• the market basket has to be changed every year

• there is not enough money in the economy

This reflects those who are actively seeking employment.

• full employment

• unemployment rate

• labor force

• underemployed

What is GDP?

• Gross Domestic Product

• Get Duties Prior

• Gross Department Power

• Gross Duties Peer