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Unemployment & Inflation

Total questions: 14

Worksheet time: 15mins

Name
Class
Date
1.

_______ occurs when people are in between jobs, entering and reentering the labor force.

a)

Cyclical unemployment

b)

Structural unemployment

c)

Frictional unemployment

d)

Seasonal unemployment

2.

Who among the following would be considered as unemployed?

a)

A graduating student of legal age to work

b)

An entrepreneur in the process of starting a new business

c)

A secretary who has resigned from work & looking at job ads

d)

A housewife running 2 internet shops at the same time

3.

When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.

a)

Structural Unemployment

b)

Cyclical Unemployment

c)

Frictional Unemployment

d)

Seasonal Unemployment

4.

Individuals are unemployed due to a lack in skills that modern industries need, change in technology.

a)

Cyclical Unemployment

b)

Frictional Unemployment

c)

Structural Unemployment

d)

Seasonal Unemployment

5.

Most countries try to maintain an inflation rate of ______ per year.

a)

One percent or less

b)

Two to three percent

c)

Four to five percent

d)

Six to seven percent

6.

Which of the following is NOT one of the components of Gross Domestic Product (GDP)?

a)

Consumption

b)

Producer Price Index

c)

Government spending

d)

Investment

7.

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

a)

Demand-pull inflation

b)

Cost-push inflation

c)

Demand-push inflation

d)

Cost-pull inflation

8.

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

Choose from the below words
hyperinflation
deflation
inflation
stagflation
9.

Which of the following is an example of inflation?

a)

The price of an iPhone rises as demand increases.

b)

The price of a TV remains constant as quality improves.

c)

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

d)

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

10.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
11.
An index that measures the prices of a market basket of goods that typical consumers purchase.
a)
Consumer Price Index
b)
Federal Reserve
c)
Bank
d)
Deflation
12.
GDP that is adjusted for inflation
a)
real GDP
b)
nominal GDP
c)
price level
d)
net national product
13.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
14.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in consumption
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply