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.E) All of the above
F) C) and D) C

Question 2

When prices are falling,economists say that there is

Accepted Answer

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

Question 3

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.E) B) and C)
F) A) and B)

Question 4

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.E) B) and C)
F) A) and B)

Question 5

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.E) A) and C)
F) None of the above

Question 6

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.E) A) and D)
F) B) and D)

Question 7

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.E) B) and C)
F) A) and B)

Question 8

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.E) A) and D)
F) A) and C)

Question 9

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.E) A) and B)
F) C) and D)

Question 10

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.E) All of the above
F) A) and D)

Question 11

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.E) All of the above
F) A) and D)

Question 12

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.E) All of the above
F) C) and D)

Question 13

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.E) C) and D)
F) All of the above

Question 14

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.E) A) and D)
F) A) and B)

Question 15

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.E) A) and B)
F) B) and C)

Question 16

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.E) A) and D)
F) A) and B)

Question 17

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.E) A) and C)
F) C) and D)

Question 18

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.E) A) and B)
F) B) and D) B

Question 19

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.E) B) and C)
F) All of the above

Question 20

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.E) B) and D)
F) B) and C)

Exam 17: Money Growth and Inflation

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

Correct AnswerverifiedC

When prices are falling,economists say that there is

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Deflation

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There was hyperinflation during the

Correct AnswerverifiedShow Answer

Hyperinflation can be explained by

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the last part of the 1800's

Correct AnswerverifiedShow Answer

Inflation can be measured by the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term hyperinflation refers to

Correct AnswerverifiedShow Answer

Inflation can be measured by the

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Which country is correctly matched with its 2015 inflation rate?

Correct AnswerverifiedShow Answer

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C

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B

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B

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