QUESTION 1

1. x=
2. w=
3. v=
4. u=
5. z=
6. t=
7. y=

QUESTION 8

Real means:

1. physical
2. factual
3. royal
4. actual buying power

QUESTION 9

Nominal means:

1. as recorded
2. known as
3. small
4. unremarkable

QUESTION10

C.O.L.A. stands for:

1. cost of living adjustment
2. core operating lag adjustment
3. consumption optimizing lift average
4. can't offer less amount

QUESTION 11

Inflation is the percent change in the:

1. priciest item
2. most popular item
3. cheapest item
4. average item
5. newest item

QUESTION 12

The bracket creep is:

1. gov tendency to delay tax refunds
2. inflation pushing us into higher tax brackets
3. IRS policy of never lowering brackets
4. brackets being based on obscure amounts

QUESTION 13

Deflation is when:

government removes money from the economy

1. the average price declines
2. workers leave the labor force
3. features are stripped from products
4. there's a price freeze

QUESTION14

In the US, deflation roughly happens:

1. monthly
2. quarterly
3. yearly
4. every decade
5. each generation

QUESTION 15

It is argued that some inflation is expected because products are becoming

1. privileged
2. scarce
3. better
4. costlier

QUESTION 16

Prices faced by people are best measured by the:

1. CPI
2. PPI
3. GDP deflator
4. none of these!

QUESTION17

Your parents' house gives them a big positive wealth effect by:

1. using it as collateral to buy another
2. going into foreclosure
3. falling into disrepair
4. being appraised at a higher value

QUESTION 18

Thecorerate of inflation excludes:

1. food
2. fuel
3. entertainment
4. food and fuel

QUESTION 19

You worked for an oil company in Venezuela and kept a savings account there paying 20% while inflation was 25%. Your real gain was _%.

1. -5
2. 0
3. 20
4. 25

QUESTION20

Your parents move to a town in Florida where houses cost half as much, your brother's company moves him and his job to New Hampshire, your sister takes a big job in NYC while you stay put. Arguing that your _ is better off is making the error called the money illusion.

1. parents
2. brother
3. self
4. sister

QUESTION21

This year's price index is 110 and was 100last year. This year pens cost $6.25 a box and cost $6 last year. The price of a box of pens:

1. increased
2. remained steady
3. decreased
4. more info needed

QUESTION 22

This year's price index is 110 and was 100 last year. This year pens cost $6.25 a box and cost $6 last year. The relative price of a box of pens:

1. increased
2. remained steady
3. decreased
4. more info needed

year p Q nom TR index real TR 50 150 50 110 110 110 80 V 100 320 W 1000 50 2000 " a U S W N X 150 300 150 200 400 800 100 y 4 225 900 Z 450