Inflation and Unemployment

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

When inflation spirals out of control, it is called ​ (a)   (when prices increase by more than 50% per month).

• hyperinflation

• deflation

• inflation

• stagflation

Which of the following is an example of inflation?

• The price of an iPhone rises as demand increases.

• The price of a TV remains constant as quality improves.

• The average price of a laptop decreases as the money supply increases.

• The average price of groceries increases following an increase in the money supply.

A general increase in prices across an economy.

• Gross Domestic Product

• Consumer Price Index

• Unemployment

• Inflation

The percentage of a nations labor force that is unemployed.

• Gross Domestic Product

• Inflation

• Unemployment

• Consumer Price Index

Unemployment that rises during economic downturns and falls when the economy improves.

• Seasonal Unemployment

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

The use of government spending and revenue collection to influence the economy.

• Monetary Policy

• Fiscal Policy

• Congressional Policy

• Executive Policy

What is the term for a situation where inflation and unemployment are both high?

• Stagflation

• Deflation

• Hyperinflation

• Recession

Which economic theory suggests that there is a short-term trade-off between inflation and unemployment?

• Keynesian Economics

• Classical Economics

• Monetarism

• Supply-Side Economics

What is the natural rate of unemployment?

• The rate of unemployment when the economy is at full employment

• The rate of unemployment during a recession

• The rate of unemployment when inflation is zero

• The rate of unemployment when the economy is growing