Question 1

A prominent conservative view of inflation is that it is caused by

Accepted Answer

A)  high input costs, included high wages and salaries. 
B)  a deficiency of aggregate demand. 
C)  productivity rising faster than wages. 
D)  excess aggregate demand. 
A)  high input costs, included high wages and salaries. 
B)  a deficiency of aggregate demand. 
C)  productivity rising faster than wages. 
D)  excess aggregate demand. A

Question 2

The U.S. government implemented wage and price controls during World War II because

Accepted Answer

A)  there was a significant increase in the production of consumer goods. 
B)  there was a significant reduction in the production of consumer goods. 
C)  there was a major increase in demand by government for consumer goods. 
D)  consumer goods manufacturers were worried about falling prices of consumer goods. 
A)  there was a significant increase in the production of consumer goods. 
B)  there was a significant reduction in the production of consumer goods. 
C)  there was a major increase in demand by government for consumer goods. 
D)  consumer goods manufacturers were worried about falling prices of consumer goods. B

Question 3

Inflation that is driven by the rising cost of inputs including wages and salaries is called

Accepted Answer

A)  demand-pull inflation. 
B)  cost push inflation. 
C)  stagflation. 
D)  profit push inflation. 
A)  demand-pull inflation. 
B)  cost push inflation. 
C)  stagflation. 
D)  profit push inflation. B

Question 4

Which group of people is likely to be the most concerned about inflation?

Accepted Answer

A)  Individuals whose wages are indexed to the rate of inflation. 
B)  Businesses selling goods that are relatively price inelastic. 
C)  Retirees on a fixed income. 
D)  Corporations with a significant degree of monopoly power. 
A)  Individuals whose wages are indexed to the rate of inflation. 
B)  Businesses selling goods that are relatively price inelastic. 
C)  Retirees on a fixed income. 
D)  Corporations with a significant degree of monopoly power.

Question 5

During World War II, the government imposed legal controls on prices. As a result there was

Accepted Answer

A)  no inflation at all. 
B)  repressed inflation. 
C)  stagflation. 
D)  demand-pull inflation. 
A)  no inflation at all. 
B)  repressed inflation. 
C)  stagflation. 
D)  demand-pull inflation.

Question 6

The phenomenon of inflation during recessions

Accepted Answer

A)  is explained by progressive economists as "demand-pull" inflation. 
B)  does not occur. 
C)  is explained by conservative economists as "cost-push" inflation. 
D)  is caused by wage and price controls. 
A)  is explained by progressive economists as "demand-pull" inflation. 
B)  does not occur. 
C)  is explained by conservative economists as "cost-push" inflation. 
D)  is caused by wage and price controls.

Question 7

The term, "stagflation," refers to

Accepted Answer

A)  inflation accompanied by low unemployment. 
B)  inflation at a time of excess aggregate demand. 
C)  inflation accompanied by high unemployment. 
D)  inflation caused by an expansion of the money supply. 
A)  inflation accompanied by low unemployment. 
B)  inflation at a time of excess aggregate demand. 
C)  inflation accompanied by high unemployment. 
D)  inflation caused by an expansion of the money supply.

Question 8

In World War II, government spending for the war

Accepted Answer

A)  was approximately 4% of GDP. 
B)  was financed entirely by increased taxes. 
C)  was approximately 40% of GDP. 
D)  was financed entirely from the surplus accumulated during the Great Depression. 
A)  was approximately 4% of GDP. 
B)  was financed entirely by increased taxes. 
C)  was approximately 40% of GDP. 
D)  was financed entirely from the surplus accumulated during the Great Depression.

Question 9

Keynesian theory predicts that inflation

Accepted Answer

A)  will rise during expansions and rise during recessions. 
B)  will fall during expansions and rise during recessions. 
C)  will fall during expansions and fall during recessions. 
D)  will rise during expansions and fall during recessions. 
A)  will rise during expansions and rise during recessions. 
B)  will fall during expansions and rise during recessions. 
C)  will fall during expansions and fall during recessions. 
D)  will rise during expansions and fall during recessions.

Question 10

The Keynesian explanation of inflation is that it is caused by

Accepted Answer

A)  aggregate demand rising faster than aggregate supply. 
B)  aggregate supply rising faster than aggregate demand. 
C)  an expansion of the money supply. 
D)  rising costs of production during a time of deficient aggregate demand. 
A)  aggregate demand rising faster than aggregate supply. 
B)  aggregate supply rising faster than aggregate demand. 
C)  an expansion of the money supply. 
D)  rising costs of production during a time of deficient aggregate demand.

Question 11

The annual rate of inflation is typically measured by

Accepted Answer

A)  a percentage increase in the price of gasoline and other basic commodities. 
B)  the difference in the Consumer Price Index from one year to the next. 
C)  the percentage change in the Consumer Price Index. 
D)  the increase in the real GDP. 
A)  a percentage increase in the price of gasoline and other basic commodities. 
B)  the difference in the Consumer Price Index from one year to the next. 
C)  the percentage change in the Consumer Price Index. 
D)  the increase in the real GDP.

A prominent conservative view of inflation is that it is caused by

The U.S. government implemented wage and price controls during World War II because

Inflation that is driven by the rising cost of inputs including wages and salaries is called

Which group of people is likely to be the most concerned about inflation?

During World War II, the government imposed legal controls on prices. As a result there was

The phenomenon of inflation during recessions

The term, "stagflation," refers to

In World War II, government spending for the war

Keynesian theory predicts that inflation

The Keynesian explanation of inflation is that it is caused by

The annual rate of inflation is typically measured by

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Economic Growth

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Fiscal Policy: How to Stimulate the Economy

Fiscal Policy: Austerians and Deficit Hawks V Stimulus

A Road to Full Employment

Filters

Exam 14: Inflation

A prominent conservative view of inflation is that it is caused by

The U.S. government implemented wage and price controls during World War II because

Inflation that is driven by the rising cost of inputs including wages and salaries is called

Which group of people is likely to be the most concerned about inflation?

During World War II, the government imposed legal controls on prices. As a result there was

The phenomenon of inflation during recessions

The term, "stagflation," refers to

In World War II, government spending for the war

Keynesian theory predicts that inflation

The Keynesian explanation of inflation is that it is caused by

The annual rate of inflation is typically measured by

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Economic Growth

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Fiscal Policy: How to Stimulate the Economy

Fiscal Policy: Austerians and Deficit Hawks V Stimulus

A Road to Full Employment

Filters