1 Stagflation occurs when the a. price level increases and real GDP decreases b. price level decreases and real GDP increases c. price level and real GDP decrease at the same time d. price level and real GDP increase at the same time Question 2 Which of the following can create demand-pull inflation? a. excessive aggregate spending b. sharply rising oil prices c. higher labour costs d. recessions and depressions Question 3 If the consumer price index (CPI) in Year 1 was 200 and the CPI in Year 2 was 215, the rate of inflation is a. 215 percent b. 15 percent c. 5 percent d. 7.5 percent Question 4 Which of the following groups benefits from inflation? a. borrowers b. savers c. lenders d. automobile manufacturers Question 5 The Phillips curve shows the relationship between the a. nominal interest rate and the real interest rate b. real interest rate and the unemployment rate c. unemployment rate and the inflation rate d. expected rate of inflation and the nominal interest rate Question 6 If the consumer price index (CPI) in Year 1 was 300 and the CPI in Year 2 was 315, the rate of inflation is a. 215% b.15 percent c. 5 percent d. 7.5 percent 4 Previous Next Dashboard