12.
A consumer expenditure survey reports the following information on consumer protein spending:
Using 2005 as the base year, by how much does a \
A. 5.2 percent
B. 8.6 percent
C. 13.4 percent
D. 14.3 percent
13.
A consumer expenditure survey reports the following information on entertainment spending: Movies Concerts CDs
Using 2008 as the base year, by how much does a \2009?
A. 3.9 percent
B. 8.6 percent
C. 13.4 percent
D. 29.4 percent
2008 Price $7 $30 $16 Quantity 5 2 7
14. A CPI that equals 1.34 in 2008 (when 2000 is the base year) means that:
A. prices in 2008 are 34 percent higher than in 2007.
B. the CPI equals $1.34 in 2008.
C. the inflation rate in 2008 is 134 percent.
D. the average level of prices is 34 percent higher in 2008 than in the base year.
15. A measure of the average price of a given class of goods or services relative to the price of the same goods
and services in a base year is called a:
A. real price.
B. real quantity.
C. rate of inflation.
D. price index.
16. A price index measures:
A. the price of specific good or service.
B. the change in the price of a specific good or service.
C. only the prices that change.
D. the average price of a given class of goods or services relative to the price of the same goods and services in a base year.
17. The annual percentage rate of change in the price level is the:
A. relative price.
B. Fisher effect.
C. cost of living.
D. inflation rate.
18. The inflation rate can be calculated as the percentage change in:
A. real GDP.
B. nominal GDP.
C. the CPI.
D. the exchange rate.
19. The CPI in year one equaled 1.45. The CPI in year two equaled 1.51. The rate of inflation between years one
and two was ______ percent. A. 4.0 B. 4.1 C. 4.5 D. 6.0
20. The CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. The rate of inflation between 1974 and 1975 was
______ percent. A. 5.0 B. 5.4 C. 9.3 D. 10.2
21. Inflation is a measure of the ______ of prices; the CPI is a measure of the ______ of prices.
A. current level; rate of change in the level
B. rate of change in the level; current level
C. index; base year’s level
D. base year’s level; index
22. The ______ is the rate of change of the _______.
A. base year price index; current year price index
B. current year price index; base year price index
C. CPI; rate of inflation
D. rate of inflation; CPI
23. In 1929, the CPI equaled 0.171 and in 1930, the CPI equaled 0.167. These data provide evidence of a period
of:
A. inflation.
B. deflation.
C. trade deficit.
D. expansion.
