Economics and Inflation Quiz

What is the primary purpose of the Consumer Price Index (CPI)?

• Measure the GDP growth rate

• Measure price level of consumer goods and services

• Measure unemployment rate

• Measure interest rates

What can the Consumer Price Index (CPI) be used to calculate?

• Inflation

• GDP

• Unemployment

• Interest rates

What is the formula to calculate CPI inflation rate?

• (Current year basket price/Base year basket price) * 100

• (GDP current year - GDP previous year)/GDP previous year * 100

• (Unemployment rate current year - Unemployment rate previous year) * 100

• (Interest rate current year - Interest rate previous year) * 100

Why might CPI inflation be more useful for consumers?

• It reflects goods bought by typical consumers

• It measures GDP growth

• It measures unemployment rates

• It measures interest rates

Who collects unemployment statistics?

• Government agencies

• Private companies

• Educational institutions

• Non-profit organizations

What is the definition of 'unemployed'?

• Not employed but have looked in last four weeks

• Not employed and not looking for work

• Employed part-time

• Employed full-time

What does LFPR stand for?

• Labor Force Participation Rate

• Labor Force Productivity Rate

• Labor Force Population Rate

• Labor Force Performance Rate

What is a pro of unemployment benefits in an economy?

• Reduces search effort

• Increases inflation

• Decreases GDP

• Increases unemployment

What is structural unemployment?

• Wages above equilibrium

• Job search

• Seasonal work

• Part-time employment

What contributes to structural unemployment?

• Minimum wage laws

• Seasonal work

• Part-time employment

• Job search