Question 1: The consumer price index is used to

Question 1 options:

	track changes in the level of wholesale prices in the economy.
	monitor changes in the cost of living.
	monitor changes in the level of real GDP.
	track changes in the stock market.

Question 2: Economists use the term inflation to describe a situation in which

Question 2 options:

	some prices are rising faster than others.
	the economy's overall price level is rising.
	the economy's overall price level is high, but not necessarily rising.
	the economy's overall output of goods and services is rising faster than the economy's overall price level.

Question 3: When the overall level of prices in the economy is increasing, we say that the economy is experiencing

Question 3 options:

	economic growth.
	stagflation.
	inflation.
	deflation.

Question 4: The inflation rate is defined as the

Question 4 options:

	price level.
	change in the price level from one period to the next.
	percentage change in the price level from the previous period.
	price level minus the price level from the previous period.

Question 5:The CPI is a measure of the overall cost of

Question 5 options:

	inputs purchased by a typical producer.
	goods and services bought by a typical consumer.
	goods and services produced in the economy.
	stocks on the New York Stock Exchange.

Question 6: Which of the following agencies calculates the CPI?

Question 6 options:

	the National Price Board
	the Department of Weight and Measurements
	the Bureau of Labor Statistics
	the Congressional Budget Office

Question 7:

The CPI is calculated

Question 7 options:

	weekly.
	monthly.
	quarterly.
	yearly.

Question 8: What basket of goods is used to construct the CPI?

Question 8 options:

	a random sample of all goods and services produced in the economy
	the goods and services that are typically bought by consumers as determined by government surveys
	only food, clothing, transportation, entertainment, and education
	the least expensive and the most expensive goods and services in each major category of consumer expenditures

Question 9: If the consumer price index was 100 in the base year and 107 in the following year, the inflation rate was

Question 9 options:

	107 percent.
	10.7 percent.
	7 percent.
	1.07 percent.

Question 10:

When the overall level of prices in the economy is decreasing, we say that the economy is experiencing

Question 10 options:

	economic growth
	stagflation
	inflation
	deflation