1. The most commonly cited measure of inflation in the United States is: A. the Consumer Price Index (CPI). B. the Deflationary Price Index (DPI) C. the Cumulative Price Index (CPI) D. the Inflationary Price Index (IPI) 2. The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the A. inflation rate B. price index rate C. consumer price index D. producer price Index 3. A payment is said to be if it is automatically adjusted for inflation. A. cross referenced B. indexed C. matched D. maintained 4. A policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes. A. proportional tax B. regressive tax C. progressive tax D. excise tax 5. The government can use in the form of to increase the level of aggregate demand in the economy A. an expansionary fiscal policy; an increase in government spending B. a contractionary fiscal policy; a reduction in taxes C. a contractionary fiscal policy; an increase in taxes D. an expansionary fiscal policy; an increase in corporate taxes6. A government annually collects $230 billion in tax revenue and allocates $70 billion to military spending. What percentage ofthis government's budget is spent on its military? A. 27.50% B. 36.63% C. 30.43% D. 41.90% 7. are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation. A. Standardized employment budgets B. Discretionary scal policies C. Automatic stabilizers D. Budget expenditures 8. During a recession, if a government uses an expansionary scal policy to increase GDP, the: A. aggregate supply curve will shift to the right. B. aggregate supply curve will shift to the left. C. aggregate demand curve will shift to the left. D. aggregate demand curve will shift to the right. 9. Lance paid $175,000 for his house in 2003 and sold it for $325,000 in 2006. What function did the house serve during the time Lance owned it? A. medium of exchange B. unit of account C. store of value D. unit of exchange 10. If mollusk shells were accepted as a method of payment in modern-day markets, what economic role would they play in the nancial system? A. capital exchange B. currency exchange C. unit of exchange D. medium of exchange