1. During a recession, it is generally the case that output __________ and inflation __________.

a. Rises; Falls

b. Rises; Rises

c. Falls; Falls

d. Falls; Rises


2. The inflation rate is determined by calculating the percentage change of the:

a. Consumer Price Index.

b. Chain price index for GDP.

c. Change in the CPI.

d. Both A and B.


3. Which of the following is NOT included in the CPI?

a. The price of used goods, such as older cars

b. The price of food

c. The price of energy

d. The price of industrial machinery

e. The price of imported consumer goods


4. Those most likely to be hurt by inflation are:

a. Borrowers.

b. Labour unions with COLA clauses.

c. Owners of real estate.

d. Lenders.

e. Owners of precious metals, antiques, and works of art.

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Mahe Alam
Mahe AlamLv10
28 Sep 2019
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