ECO 201 Chapter 23 Test #2 review Questions and Answers Graded A+
___ implies that pressure for price increases reaches across _____ markets, not just one. - Answers
inflation, most.
While once occasionally sees references to inflation over short time periods, the term typically implies a
___ in prices - Answers ongoing rise
The effects of inflation are seen in ____ - Answers goods, services, wages and income levels.
if the price index moves from 107 to 110, the rate of inflation is__ - Answers 2.8%
One of the reaons that a rise in the price of a fixed basket of goods over time tends to overstate the rise
in a consumer's true cost of living, is ___ - Answers substitution bias
When we want to measure wage inflation int he labor market, we use the___ - Answers Employment
Cost Index
The Producer Price Index is base don prices paid for supplies and inputs by____ - Answers producers and
goods and services
The ___ is based on the prices of merchandise that are exported or imported - Answers international
product index
Two factors hat complicate the calculation of the inflation rate are___ - Answers substitution and
quality/new product bias
Which of the following is an example of one of the major categories in the overall CPI? - Answers
recreation
What is the name used to describe the price index that consists of intermediate goods and finished
goods? - Answers producer price index
What name is given to the index base don the prices of exported or imported merchandise? - Answers
International Price Index
An GDP deflator is an price index that includes the following components of GDP: - Answers
Consumption, Investment, Government plus Exports minus Imports
When a price, wage, or interest rate is adjusted atomically with inflation, it is said to __ - Answers
indexed
The ___ is the nominal interest rate minus the rate of inflation - Answers real interst rate
___ implies that pressure for price increases reaches across _____ markets, not just one. - Answers
inflation, most.
While once occasionally sees references to inflation over short time periods, the term typically implies a
___ in prices - Answers ongoing rise
The effects of inflation are seen in ____ - Answers goods, services, wages and income levels.
if the price index moves from 107 to 110, the rate of inflation is__ - Answers 2.8%
One of the reaons that a rise in the price of a fixed basket of goods over time tends to overstate the rise
in a consumer's true cost of living, is ___ - Answers substitution bias
When we want to measure wage inflation int he labor market, we use the___ - Answers Employment
Cost Index
The Producer Price Index is base don prices paid for supplies and inputs by____ - Answers producers and
goods and services
The ___ is based on the prices of merchandise that are exported or imported - Answers international
product index
Two factors hat complicate the calculation of the inflation rate are___ - Answers substitution and
quality/new product bias
Which of the following is an example of one of the major categories in the overall CPI? - Answers
recreation
What is the name used to describe the price index that consists of intermediate goods and finished
goods? - Answers producer price index
What name is given to the index base don the prices of exported or imported merchandise? - Answers
International Price Index
An GDP deflator is an price index that includes the following components of GDP: - Answers
Consumption, Investment, Government plus Exports minus Imports
When a price, wage, or interest rate is adjusted atomically with inflation, it is said to __ - Answers
indexed
The ___ is the nominal interest rate minus the rate of inflation - Answers real interst rate
