1.When the overall level of prices in the economy is increasing, economists say that the economy is experiencing A. economic growth.B. stagflation C. inflation.D. deflation.
2.The CPI is a measure of the overall cost of A. the inputs purchased by a typical producer.B. the goods and services purchased by a typical consumer C. the stocks on the New York Stock Exchange
3.Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the basket’s cost was $50; in 2014, the basket’s cost was $52; and in 2016, the basket’s cost was $58. The value of the CPI in 2016 would be A. 106.0 B. 104.0 C. 111.5 D. 116.0
4.The price index was 220 in one year and 238.2 in the next year. What was the inflation rate?A. 8.3 percent B. 108.3 percent C. 4.8 percent D. 38.2 percent
5.The amount of unemployment that an economy normally experiences is called the A. average rate of unemployment B. natural rate of unemployment C. cyclical rate of unemployment D. typical rate of unemployment.
6.Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes A. the number of people unemployed rise but does not change the labor force B. the number of people unemployed rise but makes the labor force fall C. both the number of people unemployed and the labor force fall D. the number of people unemployed fall but does not change the labor force.
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