Macroeconomics Quiz: Inflation, GDP, Unemployment

What does the Consumer Price Index (CPI) measure?

• The total value of all goods and services produced in a country.

• The average change over time in the prices consumers pay for a "basket" of consumer goods and services.

• The percentage of the labor force that is unemployed.

Which of the following is included in the calculation of GDP?

• The value of volunteer work.

• The production of goods and services inside a country's borders.

• The resale of used goods.

What is the Unemployment Rate (U-Rate) ?

• The number of unemployed individuals by the total adult population.

• The labor force by the number of employed individuals.

• The number of unemployed individuals by the labor force.

What does GDP measure?

• Unemployment

• Product

• Inflation

What is the main purpose of measuring inflation using the CPI (Consumer Price Index)?

• To track economic growth by measuring total economic output.

• To understand changes how the cost of living changes over time.

• To calculate the total value of goods and services produced by a country's economy.