WorksheetsEconomics Inflation and Unemployment
Total questions: 18
Worksheet time: 10mins
Which is the correct term for a fall in the rate of inflation?
Deflation
Reflation
Disinflation
Stagflation
What is meant by the term 'hyperinflation'?
The rise in GDP following the end of a recession
A continuous general rise in prices
A general fall in prices
Very high levels of inflation
The Consumer Price Index. If the price index is 100 today and 105 in one year's time, what will the inflation rate be?
5%
-5%
10%
105%
A person who is looking for full-time work, but who only works part-time is described as .......
Not a member of the workforce
Underemployed
Unemployed
Employed
Which is the following people is a member of the labour force?
A retired person
A person of working age who has given up looking for work
A person without a job who is actively seeking work
A child at school
What is a claimant count?
The number of people claiming unemployment benefit
The number of adults of working age without a job
The number of people in employment
The number of retired people
Identify 2 reasons why the claimant count may NOT be an accurate measure of unemployment
Governments measure unemployment
Not everyone claims
Claimants are unemployed
Fraud
When demand-pull inflation occurs which way does the aggregate demand [AD] curve shift?
It doesn't shift
It shifts to the right [upwards]
It shifts to the left [downwards]
When cost-push inflation occurs what happens to the SRAS curve in the classical model?
It shifts to the left
It doesn't change
It shifts to the right
Which of the following factors will cause demand-pull inflation?
A fall in government spending
A fall in interest rates
An increase in taxation
Falling consumer confidence
Which of the following factors will cause cost-push inflation?
Rising wages
Lower business taxes
Cheaper imported raw materials
Rising prices of raw materials
Which of the following changes may result from a weak exchange rate?
Higher wages
Imported raw materials become more expensive
An increase in government spending
An increase in export revenue
If the rate of inflation is higher than interest rates, real interest rates are said to be......
Positive
Negative
Which group benefits from negative real interest rates?
Borrowers
Savers
No-one
Give TWO reasons why demand-side deflation is considered bad for the economy
It leads to an inflationary spiral
It leads to delayed spending
It increases the real value of debt
What is a possible long-term result of demand-side deflation?
Economic boom
Recession
No long-term impact
Which of the following statements is true of supply-side deflation?
It can be anticipated
It lasts a long time
Prices fall
Higher economic growth is the result
Which of the following is likely to cause supply-side deflation?
Lower direct taxes
Higher taxes
A sudden drop in commodity prices
Higher wages
