Objective #11: Inflation & Unemployment (MCQ Quizizz)

A sudden increase in consumer spending leads to a rise in the prices of goods and services. This type of inflation is known as:

• Cost-Push Inflation

• Demand-Pull Inflation

• Wage-Price Spiral

• Monetary Policy

After a natural disaster disrupts supply chains, the prices of essential goods rise sharply. This scenario illustrates:

• A) Wage-Price Spiral

• B) Cost-Push Inflation

• C) Demand-Pull Inflation

• D) Monetary Policy

As unions negotiate higher wages, businesses raise their prices to maintain profit margins. This situation reflects which concept?

• A) Monetary Policy

• B) Wage-Price Spiral

• C) Frictional Unemployment

• D) Cyclical Unemployment

The Federal Reserve decides to lower interest rates, resulting in an increased money supply. This can lead to:

• Lower prices

• Demand-Pull Inflation

• Structural Unemployment

As inflation rises, consumers find that their money doesn't go as far as it used to. This reduction in purchasing power is a direct effect of:

• Frictional Unemployment

• Cost-Push Inflation

• Demand-Pull Inflation

• Wage-Price Spiral

When the economy is in a recession, many businesses cut jobs, leading to income loss and lower output. This is an example of:

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

• Seasonal Unemployment

A factory closes down due to automation, leaving many workers without jobs. This is an example of which type of unemployment?

• Frictional Unemployment

• Cyclical Unemployment

• Seasonal Unemployment

• Structural Unemployment

As people transition between jobs, they may experience brief periods of unemployment. This type of unemployment is known as:

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

During the holiday season, retailers hire additional workers to meet the increased demand. This reflects which type of unemployment?

• A) Cyclical Unemployment

• B) Structural Unemployment

• C) Frictional Unemployment

• D) Seasonal Unemployment

High unemployment leads to increased government costs in the form of welfare and unemployment benefits. This is an effect of:

• A) Demand-Pull Inflation

• B) Cost-Push Inflation

• C) Unemployment

• D) Wage-Price Spiral