Question 1

If the price level increased from 120 to 144,then what was the inflation rate?

Accepted Answer

A) 24 percent. 
B) 25 percent. 
C) 20 percent. 
D) 17 percent. 
A) 24 percent. 
B) 25 percent. 
C) 20 percent. 
D) 17 percent. C

Question 2

Inflation can be measured by the

Accepted Answer

A) change in the consumer price index. 
B) percentage change in the consumer price index. 
C) percentage change in the price of a specific commodity. 
D) change in the price of a specific commodity. 
A) change in the consumer price index. 
B) percentage change in the consumer price index. 
C) percentage change in the price of a specific commodity. 
D) change in the price of a specific commodity. B

Question 3

When prices are falling,economists say that there is

Accepted Answer

A) disinflation. 
B) deflation. 
C) a contraction. 
D) an inverted inflation. 
A) disinflation. 
B) deflation. 
C) a contraction. 
D) an inverted inflation. B

Question 4

Deflation

Accepted Answer

A) increases incomes and enhances the ability of debtors to pay off their debts. 
B) increases incomes and reduces the ability of debtors to pay off their debts. 
C) decreases incomes and enhances the ability of debtors to pay off their debts. 
D) decreases incomes and reduces the ability of debtors to pay off their debts. 
A) increases incomes and enhances the ability of debtors to pay off their debts. 
B) increases incomes and reduces the ability of debtors to pay off their debts. 
C) decreases incomes and enhances the ability of debtors to pay off their debts. 
D) decreases incomes and reduces the ability of debtors to pay off their debts.

Question 5

Which of the following statements about U.S.inflation is not correct?

Accepted Answer

A) Low inflation was viewed as a triumph of President Carter's economic policy. 
B) There were long periods in the nineteenth century during which prices fell. 
C) The U.S.public has viewed inflation rates of even 7 percent as a major economic problem. 
D) The U.S.inflation rate has varied over time,but international data show even more variation. 
A) Low inflation was viewed as a triumph of President Carter's economic policy. 
B) There were long periods in the nineteenth century during which prices fell. 
C) The U.S.public has viewed inflation rates of even 7 percent as a major economic problem. 
D) The U.S.inflation rate has varied over time,but international data show even more variation.

Question 6

Over the past 80 years,the overall price level in the U.S.has experienced a(n)

Accepted Answer

A) 4-fold increase. 
B) 10-fold increase. 
C) 13-fold increase. 
D) 17-fold increase. 
A) 4-fold increase. 
B) 10-fold increase. 
C) 13-fold increase. 
D) 17-fold increase.

Question 7

Which of the following is not correct?

Accepted Answer

A) The inflation rate is measured as the percentage change in a price index. 
B) For the last 40 or so years,U.S.inflation hasn't shown much variation from its average rate of about 2 percent. 
C) During the 19th century there were long periods of falling prices in the U.S. 
D) Some economists argue that the costs of moderate inflation are not nearly as large as the general public believes. 
A) The inflation rate is measured as the percentage change in a price index. 
B) For the last 40 or so years,U.S.inflation hasn't shown much variation from its average rate of about 2 percent. 
C) During the 19th century there were long periods of falling prices in the U.S. 
D) Some economists argue that the costs of moderate inflation are not nearly as large as the general public believes.

Question 8

Hyperinflation can be explained by

Accepted Answer

A) ​the market for loanable funds. 
B) ​the quantity theory of money. 
C) the velocity theory of money. 
D) ​the market for federal funds. 
A) ​the market for loanable funds. 
B) ​the quantity theory of money. 
C) the velocity theory of money. 
D) ​the market for federal funds.

Question 9

The term hyperinflation refers to

Accepted Answer

A) the spread of inflation from one country to others. 
B) a decrease in the inflation rate. 
C) a period of very high inflation. 
D) inflation accompanied by a recession. 
A) the spread of inflation from one country to others. 
B) a decrease in the inflation rate. 
C) a period of very high inflation. 
D) inflation accompanied by a recession.

Question 10

In the last part of the 1800's

Accepted Answer

A) deflation made it harder for farmers to pay off their debt. 
B) deflation made it easier for farmers to pay off their debt. 
C) inflation made it harder for farmers to pay off their debt. 
D) inflation made it easier for farmers to pay off their debt. 
A) deflation made it harder for farmers to pay off their debt. 
B) deflation made it easier for farmers to pay off their debt. 
C) inflation made it harder for farmers to pay off their debt. 
D) inflation made it easier for farmers to pay off their debt.

Question 11

Inflation can be measured by the

Accepted Answer

A) change in the consumer price index.Inflation in the U.S.has averaged about 2.5% over the last 80 years. 
B) change in the consumer price index.Inflation in the U.S.has averaged about 4% over the last 80 years. 
C) percentage change in the consumer price index.Inflation in the U.S.has averaged about 3.6% over the last 80 years. 
D) percentage change in the consumer price index.Inflation in the U.S.has averaged about 4% over the last 80 years. 
A) change in the consumer price index.Inflation in the U.S.has averaged about 2.5% over the last 80 years. 
B) change in the consumer price index.Inflation in the U.S.has averaged about 4% over the last 80 years. 
C) percentage change in the consumer price index.Inflation in the U.S.has averaged about 3.6% over the last 80 years. 
D) percentage change in the consumer price index.Inflation in the U.S.has averaged about 4% over the last 80 years.

Question 12

Between 1880 and 1896 the average level of prices in the U.S.economy

Accepted Answer

A) fell 23 percent. 
B) fell 4 percent. 
C) rose 23 percent. 
D) rose 50 percent. 
A) fell 23 percent. 
B) fell 4 percent. 
C) rose 23 percent. 
D) rose 50 percent.

Question 13

There was hyperinflation during the

Accepted Answer

A) period 1880-1896 in the United States. 
B) 1970s in the United States. 
C) early part of the current century in Zimbabwe. 
D) All of the above are correct. 
A) period 1880-1896 in the United States. 
B) 1970s in the United States. 
C) early part of the current century in Zimbabwe. 
D) All of the above are correct.

Question 14

Over the past 80 years,prices in the U.S.have risen on average about

Accepted Answer

A) 2 percent per year. 
B) 4 percent per year. 
C) 3.6 percent per year. 
D) 6 percent per year. 
A) 2 percent per year. 
B) 4 percent per year. 
C) 3.6 percent per year. 
D) 6 percent per year.

Question 15

If the price level last year was 180 and this year it is 176,then

Accepted Answer

A) there was inflation of 2.3 percent. 
B) there was inflation of 4.0 percent. 
C) there was deflation of 2.2 percent. 
D) there was deflation of 4.0 percent. 
A) there was inflation of 2.3 percent. 
B) there was inflation of 4.0 percent. 
C) there was deflation of 2.2 percent. 
D) there was deflation of 4.0 percent.

Question 16

If the price level increased from 200 to 250,then what was the inflation rate?

Accepted Answer

A) 50 percent 
B) 25 percent 
C) 20 percent 
D) None of the above is correct. 
A) 50 percent 
B) 25 percent 
C) 20 percent 
D) None of the above is correct.

Question 17

Which country is correctly matched with its 2015 inflation rate?

Accepted Answer

A) 9 percent inflation in the United States. 
B) 3.6 percent inflation in Russia. 
C) 59 percent inflation in Venezuela. 
D) 4.9 percent inflation in India. 
A) 9 percent inflation in the United States. 
B) 3.6 percent inflation in Russia. 
C) 59 percent inflation in Venezuela. 
D) 4.9 percent inflation in India.

Question 18

Which of the following statements concerning the history of U.S.inflation is not correct?

Accepted Answer

A) Prices rose at an average annual rate of about 3.6 percent over the last 80 years. 
B) There was about a 17-fold increase in the price level over the last 80 years. 
C) Inflation in the 1970s was below the average over the last 80 years. 
D) The United States has experienced periods of deflation. 
A) Prices rose at an average annual rate of about 3.6 percent over the last 80 years. 
B) There was about a 17-fold increase in the price level over the last 80 years. 
C) Inflation in the 1970s was below the average over the last 80 years. 
D) The United States has experienced periods of deflation.

Question 19

Which of the following is correct?

Accepted Answer

A) A period of hyperinflation is a period of extraordinarily low inflation. 
B) A period of deflation is any period during which the inflation rate is decreasing. 
C) In the 1970s,U.S.inflation averaged about 7.8 percent per year 
D) All of the above are correct. 
A) A period of hyperinflation is a period of extraordinarily low inflation. 
B) A period of deflation is any period during which the inflation rate is decreasing. 
C) In the 1970s,U.S.inflation averaged about 7.8 percent per year 
D) All of the above are correct.

Question 20

In which of the following cases was the inflation rate 12 percent over the last year?

Accepted Answer

A) One year ago the price index had a value of 110 and now it has a value of 120. 
B) One year ago the price index had a value of 120 and now it has a value of 132. 
C) One year ago the price index had a value of 134 and now it has a value of 150. 
D) One year ago the price index had a value of 145 and now it has a value of 163. 
A) One year ago the price index had a value of 110 and now it has a value of 120. 
B) One year ago the price index had a value of 120 and now it has a value of 132. 
C) One year ago the price index had a value of 134 and now it has a value of 150. 
D) One year ago the price index had a value of 145 and now it has a value of 163.

Exam 17: Money Growth and Inflation

If the price level increased from 120 to 144,then what was the inflation rate?

Inflation can be measured by the

When prices are falling,economists say that there is

Deflation

Which of the following statements about U.S.inflation is not correct?

Over the past 80 years,the overall price level in the U.S.has experienced a(n)

Which of the following is not correct?

Hyperinflation can be explained by

The term hyperinflation refers to

In the last part of the 1800's

Inflation can be measured by the

Between 1880 and 1896 the average level of prices in the U.S.economy

There was hyperinflation during the

Over the past 80 years,prices in the U.S.have risen on average about

If the price level last year was 180 and this year it is 176,then

If the price level increased from 200 to 250,then what was the inflation rate?

Which country is correctly matched with its 2015 inflation rate?

Which of the following statements concerning the history of U.S.inflation is not correct?

Which of the following is correct?

In which of the following cases was the inflation rate 12 percent over the last year?

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion