Quiz on Inflation and Unemployment

What does inflation primarily refer to?

• Increase in the general price level

• Decrease in the general price level

• Increase in employment rates

• Stability of currency value

Which type of inflation is characterized by a gradual increase of a few percent annually?

• Deflation

• Creeping inflation

• Hyperinflation

• Galloping inflation

What is the main cause of demand-pull inflation?

• Too much money chasing too few goods

• Increase in production costs

• Decrease in consumer spending

• Government regulations

What is the unemployment rate as of September 2024?

• 3.2%

• 4.5%

• 5.0%

• 6.1%

According to the Phillips curve, what happens to inflation when unemployment decreases?

• Unemployment increases

• Inflation decreases

• Inflation remains constant

• Inflation increases

What is the effect of predictable inflation on economic actors?

• It decreases consumer spending

• It leads to uncertainty

• It increases unemployment

• It allows for long-term planning

What type of inflation occurs when the prices of different goods rise at different rates?

• Demand-pull inflation

• Disproportionate inflation

• Cost-push inflation

• Balanced inflation

What is a significant consequence of high inflation?

• Increased purchasing power

• Decreased savings value

• Higher employment rates

• Stabilized prices

What is the primary definition of unemployment?

• When wages are too low

• When job openings exceed job seekers

• When job seekers exceed job openings

• When the economy is in recession

What is a common perception about inflation between genders?

• Inflation expectations are irrelevant

• Both genders have the same expectations

• Women expect higher inflation than men

• Men expect higher inflation than women