The table shows consumer price index data for the United Kingdom. Based on this information, what is the rate of inflation in 2014? UK CONSUMER PRICE INDEX $\begin{array} { | l | l | } \hline YEAR & CPI \\ \hline 2013 & 98.2 \\ \hline 2014 & 99.6 \\ \hline 2015 & 100 \\ \hline 2016 & 101 \\ \hline 2017 & 103.6 \\ \hline 2018 & 106 \\ \hline \end{array}$

A) 2.29% B) 1.43% C) 2.57% D) 0.40% A) 2.29% B) 1.43% C) 2.57% D) 0.40%

A) a period of high money growth in an economy. B) extremely high rates of inflation. C) very high rates of economic growth. D) inflation that occurs when the economy is in a recession. A) a period of high money growth in an economy. B) extremely high rates of inflation. C) very high rates of economic growth. D) inflation that occurs when the economy is in a recession.

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2006? \[\begin{array}{l} \text { U.S. CONSUMER PRICE INDEX }\\ \begin{array} { | c | c | } \hline \text { YEAR } & \begin{array} { c } \text { CONSUMER } \\ \text { PRICE INDEX } \end{array} \\ \hline 2005 & 195.27 \\ \hline 2006 & 201.56 \\ \hline 2007 & 207.34 \\ \hline 2008 & 215.25 \\ \hline 2009 & 214.57 \\ \hline 2010 & 218.08 \\ \hline \end{array} \end{array}\]

A) 3.81% B) 3.22% C) 1.64% D) 2.87% A) 3.81% B) 3.22% C) 1.64% D) 2.87%

Exam 24: Inflation and Money

In 2007, a U.S. forever stamp cost $0.41. In 2019, a U.S. forever stamp cost $0.55. In January 2007, the consumer price index was 207.34. If in January 2019, the consumer price index was 251.1, what is the approximate price of the 2007 forever stamp in 2019 dollars?

(Multiple Choice)

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Question 21

Which of the following shows the medium of exchange function of money?

(Multiple Choice)

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Question 22

The table shows consumer price index data for the United Kingdom. Based on this information, what is the rate of inflation in 2014? UK CONSUMER PRICE INDEX YEAR CPI 2013 98.2 2014 99.6 2015 100 2016 101 2017 103.6 2018 106

(Multiple Choice)

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Question 23

Meredith has purchased a guaranteed income certificate (GIC) in Canada. This financial instrument pays her 1% interest per year. However, inflation during the same year is 2%. What was Meredith's real interest rate on her GIC?

(Multiple Choice)

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Question 24

You open a savings account that pays 1.67% interest a year. What is your real rate of return if the actual inflation rate is 1.67%?

(Multiple Choice)

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Question 25

You purchase a certificate of deposit that pays an advertised rate of 2.25% interest per year. What is your nominal rate of return if the actual inflation rate is 1.65%?

(Multiple Choice)

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Question 26

In 2014, Venezuela experienced inflation of about 69%. In 2015, the inflation rate rose to around 181%, and by 2017, the inflation rate was over 4,000%. This scenario describes:

(Multiple Choice)

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Question 27

Consider the following basket of goods: 10 loaves of bread, 300 oranges, four pairs of jeans, and two pairs of shoes. Suppose that in 2017, each loaf of bread was $2.99, each orange was $1, each pair of jeans was $47, and each pair of shoes was $95. In 2018, each loaf of bread was $2.99, each orange was $0.75, each pair of jeans was $49.50, and each pair of shoes was $99.99. What was the inflation rate in 2018?

(Multiple Choice)

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Question 28

Your typical entertainment bundle consists of 20 movie tickets, 160 meals in restaurants, and 3 hotel stays. Suppose that last year, each movie ticket cost you $9, each restaurant meal cost you $45, and each hotel stay cost you $650. This year, each movie ticket still costs you $9, each restaurant meal costs you $49, and each hotel stay costs you $675. (a) What was the cost of your entertainment bundle last year? (b) What is the cost of your entertainment bundle this year? (c) What is the rate of inflation or deflation between the two years?

(Short Answer)

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Question 29

In January 2008, you purchased a financial instrument with a nominal interest rate of 2.75% per year. At the time, the consumer price index was 212.17. By January 2009, the consumer price index went to 211.93. What was your real rate of interest?

(Short Answer)

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Question 30

If the consumer price index is 160.6 for 2018 and 163.1 for 2019, what was the inflation rate between these two years?

(Multiple Choice)

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Question 31

In 1979, when the consumer price index was 72.58, men earned a median income of $11,779 per year. If the consumer price index in 2015 was 236.99, how much was $11,779 in 2015 dollars?

(Multiple Choice)

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Question 32

What is Sri Lanka's GDP deflator if its nominal GDP is $88.9 billion (in current US$) and the real GDP is $59.34 billion?

(Multiple Choice)

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Question 33

Even if inflation exists, your purchasing power from one period to the next will stay intact if:

(Multiple Choice)

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Question 34

Which of the following explains why the price of a product might rise from one year to the next? (i) an increase in quality (ii) industry pricing trends (iii) increased costs of production (iv) an increase in demand for the product

(Multiple Choice)

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Question 35

Hyperinflation is:

(Multiple Choice)

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Question 36

If you didn't get a cost of living increase in your paycheck this year:

(Multiple Choice)

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Question 37

What is Fiji's GDP deflator if its nominal GDP is $5.48 billion (in current US$) and the real GDP is $5.21 billion?

(Multiple Choice)

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Question 38

The nominal interest rate is the:

(Multiple Choice)

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Question 39

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2006? U.S. CONSUMER PRICE INDEX YEAR CONSUMER PRICE INDEX 2005 195.27 2006 201.56 2007 207.34 2008 215.25 2009 214.57 2010 218.08

(Multiple Choice)

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Question 40

Showing 21 - 40 of 158

Exam 24: Inflation and Money

In 2007, a U.S. forever stamp cost $0.41. In 2019, a U.S. forever stamp cost $0.55. In January 2007, the consumer price index was 207.34. If in January 2019, the consumer price index was 251.1, what is the approximate price of the 2007 forever stamp in 2019 dollars?

Which of the following shows the medium of exchange function of money?

The table shows consumer price index data for the United Kingdom. Based on this information, what is the rate of inflation in 2014? UK CONSUMER PRICE INDEX YEAR CPI 2013 98.2 2014 99.6 2015 100 2016 101 2017 103.6 2018 106

Meredith has purchased a guaranteed income certificate (GIC) in Canada. This financial instrument pays her 1% interest per year. However, inflation during the same year is 2%. What was Meredith's real interest rate on her GIC?

You open a savings account that pays 1.67% interest a year. What is your real rate of return if the actual inflation rate is 1.67%?

You purchase a certificate of deposit that pays an advertised rate of 2.25% interest per year. What is your nominal rate of return if the actual inflation rate is 1.65%?

In 2014, Venezuela experienced inflation of about 69%. In 2015, the inflation rate rose to around 181%, and by 2017, the inflation rate was over 4,000%. This scenario describes:

In January 2008, you purchased a financial instrument with a nominal interest rate of 2.75% per year. At the time, the consumer price index was 212.17. By January 2009, the consumer price index went to 211.93. What was your real rate of interest?

If the consumer price index is 160.6 for 2018 and 163.1 for 2019, what was the inflation rate between these two years?

In 1979, when the consumer price index was 72.58, men earned a median income of $11,779 per year. If the consumer price index in 2015 was 236.99, how much was $11,779 in 2015 dollars?

What is Sri Lanka's GDP deflator if its nominal GDP is $88.9 billion (in current US$) and the real GDP is $59.34 billion?

Even if inflation exists, your purchasing power from one period to the next will stay intact if:

Which of the following explains why the price of a product might rise from one year to the next? (i) an increase in quality (ii) industry pricing trends (iii) increased costs of production (iv) an increase in demand for the product

Hyperinflation is:

If you didn't get a cost of living increase in your paycheck this year:

What is Fiji's GDP deflator if its nominal GDP is $5.48 billion (in current US$) and the real GDP is $5.21 billion?

The nominal interest rate is the:

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2006? U.S. CONSUMER PRICE INDEX YEAR CONSUMER PRICE INDEX 2005 195.27 2006 201.56 2007 207.34 2008 215.25 2009 214.57 2010 218.08

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

The Fed Model: Linking Interest Rates, Output, and Inflation

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

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