Multiple Choice
In macroeconomics, the inflation rate is defined as the:
11. Unemployment and Inflation
Inflation and Consumer Price Index (CPI)
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In macroeconomics, typically low inflation (as measured by the Consumer Price Index, CPI) is a sign of which of the following?
A
A sustained increase in the money supply that is outpacing real GDP growth
B
Weak aggregate demand and a possible recessionary (negative) output gap
C
An overheating economy with strong demand and accelerating wage-price spirals
D
A negative supply shock (for example, a sudden rise in oil prices) that raises production costs
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Inflation and Consumer Price Index (CPI) practice set
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