Organizational Culture
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Question 1The annual rate of inflation went up from 2% to 3%, this means:Selected:a. The real value of the money has decreased.This answer is correct.b. The price level has fallen.c. The exchange rate of the local currency has increase.d. The cost of living has decreased2/2Question 2Under a full-employment level, a demand-pull inflation can turn into a cost-push inflation, when : a. Increases in aggregate supply results to lower unemployment rate.b. increases in aggregate demand results bigger market opportunity for sellers.c. increases in aggregate supply results to higher prices.Selected:d. increases in aggregate demand results to a stress on resources for production.This answer is correct.2/2Question 3Inflation causes Real GDP to decrease because:a. it makes everyone poorerb. it decreases savings in financial formSelected:c. it increases the cost of investmentThis answer is correct.d. it reduces the value of money loaned.2/2Question 4Which of the following is true about a period of inflation?a. Prices of all goods & services are rising and falling.Selected:b. The general price is rising.This answer is correct.c. All prices are rising.d. All of the above.2/2Question 5Demand-pull inflation is an inflation that results from an initial:Selected:a. increase in aggregate demandThis answer is correct.b. increase in wage ratesc. increase in natural resource pricesd. decrease in aggregate demand0/2Question 6If economic growth causes the long-run aggregate supply curve to shift rightward over time, but the aggregate demand curve does not change, we expect:
a. equilibrium price to rise resulting to an inflation.b. equilibrium price to decline, resulting to deflationSelected:c. equilibrium price to rise.This answer is correct.d. equilibrium price to decline.2/2Question 7Assuming that the economy is at a near-full employment level, which of the follwing could cause a rise in the price level:a. An increase in import.Selected:b. A decrease in the interest rates.This answer is correct.c. An increase in the productivity of workers.d. A decrease in the price of energy.2/2Question 8Assuming that CPI for January 2017 is 146, this mean:a. Prices have risen by 146% from the base year.Selected:b. The average price of goods and services is 146 in January 2017This answer is correct.c. The average price of goods and services has risen to 146 in January 2017d. The data provided can not ascertain what happened.2/2Question 9The Consumer Price Index:a. Measures the level output in the economy over a yearb. Measures the increase in wholesale prices since a base yearSelected:c. Measures the rate of price changes over a given periodThis answer is correct.d. Measures then difference between nominal and real GDP2/2Question 10An increase in the price level:a. decreases an individuals purchases due to a increase in the real value money.b. increases an individuals purchases because the real value of money increaseSelected:c. decreases an individuals purchases due to a decrease in the real value money.This answer is correct.d. increases an individuals purchases because it does not affect the real value money.2/2Question 11Which of the following is not a cause of inflation?a. Too much aggregate demand.Selected:b. Too much aggregate supply.This answer is correct.c. An increase in the average price level. d. Too much money chasing too few goods.2/2Question 12Cost-push inflation is due to:a. excess total spending.b. too much money chasing too few goods.c. economy operating at full employment.Selected:d. resource cost increases.This answer is correct.2/2Question 13Except for one, the follwoing can result to a cost push inflation:a. An increase in the per kilowatt price of electricity.b. An increase in the exchange rate of international currency against the peso.Selected:c. An increase in government expenditure.This answer is correct.d. An increase in the price of resources.2/2Question 14Policy makers do not aim for zero % inflation because: