Exam 8: Inflation

If a disease affected apple trees in Australia and significantly reduced the availability of apples for a year, what affect would this have on the CPI and would using the CPI to calculate the rate of inflation produce an accurate representation of the rate of inflation in that year? _ _

(Essay)

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Question 81

Of the market basket that makes up CPI, which of the following is the largest portion?

(Multiple Choice)

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Question 82

Inflation that is than what is expected benefits and hurts .

(Multiple Choice)

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Question 83

'Demand-pull inflation' is caused by:

(Multiple Choice)

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Question 84

The 'GDP deflator includes the price changes of all newly produced goods and services while the 'consumer price index' only includes the price changes of some newly produced goods and services.

(True/False)

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Question 85

Which of the following describes the accuracy of the Consumer Price Index (CPI)?

(Multiple Choice)

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Question 86

What is 'hyperinflation'? _ _

(Essay)

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Question 87

'Demand-pull inflation' is characterised by:

(Multiple Choice)

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Question 88

The 'producer price index' tracks the prices firms receive for goods and services at all stages of production.

(True/False)

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Question 89

If the nominal interest rate is 8% and the inflation rate is 3%, then the real interest rate is:

(Multiple Choice)

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Question 90

The nominal interest rate minus the inflation rate equals the real interest rate.

(True/False)

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Question 91

If inflation is higher than expected, in the case of a fixed interest rate loan, this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

(True/False)

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Question 92

When does 'inflation' occur?

(Multiple Choice)

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Question 93

Suppose that the data in the following table reflects the prices in the economy. What is the inflation rate in between 2017 and 2018?

(Multiple Choice)

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Question 94

'Anticipated inflation' increases the amount of taxation paid by firms and individuals.

(True/False)

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Question 95

Financial institutions who have loaned money at a fixed rate of interest will most likely:

(Multiple Choice)

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Question 96

There is a negative relationship between real interest rates and inflation rates.

(True/False)

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Question 97

Which of the following is not a potential problem with deflation?

(Multiple Choice)

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Question 98

'Cost-push inflation' can be caused by:

(Multiple Choice)

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Question 99

'Cost-push inflation' is characterised by:

(Multiple Choice)

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Question 100

If a disease affected apple trees in Australia and significantly reduced the availability of apples for a year, what affect would this have on the CPI and would using the CPI to calculate the rate of inflation produce an accurate representation of the rate of inflation in that year? _ _

Of the market basket that makes up CPI, which of the following is the largest portion?

Inflation that is than what is expected benefits and hurts .

'Demand-pull inflation' is caused by:

The 'GDP deflator includes the price changes of all newly produced goods and services while the 'consumer price index' only includes the price changes of some newly produced goods and services.

Which of the following describes the accuracy of the Consumer Price Index (CPI)?

What is 'hyperinflation'? _ _

'Demand-pull inflation' is characterised by:

The 'producer price index' tracks the prices firms receive for goods and services at all stages of production.

If the nominal interest rate is 8% and the inflation rate is 3%, then the real interest rate is:

The nominal interest rate minus the inflation rate equals the real interest rate.

If inflation is higher than expected, in the case of a fixed interest rate loan, this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

When does 'inflation' occur?

Suppose that the data in the following table reflects the prices in the economy. What is the inflation rate in between 2017 and 2018?

'Anticipated inflation' increases the amount of taxation paid by firms and individuals.

Financial institutions who have loaned money at a fixed rate of interest will most likely:

There is a negative relationship between real interest rates and inflation rates.

Which of the following is not a potential problem with deflation?

'Cost-push inflation' can be caused by:

'Cost-push inflation' is characterised by:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Unemployment

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 8: Inflation

Of the market basket that makes up CPI, which of the following is the largest portion?

Inflation that is ________ than what is expected benefits ________ and hurts ________.

'Demand-pull inflation' is caused by:

The 'GDP deflator includes the price changes of all newly produced goods and services while the 'consumer price index' only includes the price changes of some newly produced goods and services.

Which of the following describes the accuracy of the Consumer Price Index (CPI)?

What is 'hyperinflation'? _____________________________________________________________________________________________ _____________________________________________________________________________________________

'Demand-pull inflation' is characterised by:

The 'producer price index' tracks the prices firms receive for goods and services at all stages of production.

If the nominal interest rate is 8% and the inflation rate is 3%, then the real interest rate is:

The nominal interest rate minus the inflation rate equals the real interest rate.

If inflation is higher than expected, in the case of a fixed interest rate loan, this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

When does 'inflation' occur?

Suppose that the data in the following table reflects the prices in the economy. What is the inflation rate in between 2017 and 2018?

'Anticipated inflation' increases the amount of taxation paid by firms and individuals.

Financial institutions who have loaned money at a fixed rate of interest will most likely:

There is a negative relationship between real interest rates and inflation rates.

Which of the following is not a potential problem with deflation?

'Cost-push inflation' can be caused by:

'Cost-push inflation' is characterised by:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Unemployment

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Inflation that is than what is expected benefits and hurts .

What is 'hyperinflation'? _ _