Study Game - Topic 2.4 - Price Indices and Inflation, Topic 2.5 - Costs of Inflation

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Use this game to study Topics 2.4 - 2.6 of AP Macroeconomics.

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Zachary Foust

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Study Game - Topic 2.4 - Price Indices and Inflation, Topic 2.5 - Costs of Inflation


Study Game - Topic 2.4 - Price Indices and Inflation, Topic 2.5 - Costs of InflationVersión en línea Use this game to study Topics 2.4 - 2.6 of AP Macroeconomics. por Zachary Foust 1 Define price level. a A measure of all prices b Price of a single product c Domestically produced finished goods/services d Jobless and looking for work 2 Define consumer price index (CPI). a (Year 2 - year 1)/year 1 x 100 b (Given year/base year) x 100 c Nominal wages - inflation rate d Nominal interest rate - inflation rate 3 Define inflation rate. a (Year 2 - year 1)/year 1 x 100 b (Given year/base year) x 100 c Nominal wages - inflation rate d Nominal interest rate - inflation rate 4 Define real wages. a (Year 2 - year 1)/year 1 x 100 b (Given year/base year) x 100 c Nominal wages - inflation rate d Nominal interest rate - inflation rate 5 Define real interest rate. a (Year 2 - year 1)/year 1 x 100 b (Given year/base year) x 100 c Nominal wages - inflation rate d Nominal interest rate - inflation rate 6 Define market basket. a A group of goods/services b A measure of all prices c A shopping cart d A group of physical goods 7 Define base year. a Earliest year in data set b Any year c Year compared to other years d Last year in data set 8 Define inflation. a Rising prices b Falling prices c Prices rising more slowly d Sum of all prices 9 Define deflation. a Rising prices b Falling prices c Prices rising more slowly d Sum of all prices 10 Define disinflation. a Rising prices b Falling prices c Prices rising more slowly d Sum of all prices 11 Calculate the consumer price index (CPI) in 2024. Round to the nearest tenth. a 266.7 b 300.7 c 200.5 d 37.5 12 Assume the price level in 2020 is 258.8, and the price level in 2021 is 271.0. Calculate the inflation rate in 2021. a 4.7% b 8.0% c 4.1% d 3.0% 13 Assume the price level in 2021 is 271.0, and the price level in 2022 is 292.7. Calculate the inflation rate in 2022. a 4.7% b 8.0% c 4.1% d 3.0% 14 Assume the price level in 2022 is 292.7, and the price level in 2023 is 304.7. Calculate the inflation rate in 2023. a 4.7% b 8.0% c 4.1% d 3.0% 15 Assume the price level in 2023 is 304.7, and the price level in 2024 is 313.7. Calculate the inflation rate in 2024. a 4.7% b 8.0% c 4.1% d 3.0% 16 Assume that the nominal interest rate on a loan contract is 6%, and the expected inflation rate is 2%. Calculate the real interest rate. a 4% b 1% c 8% d 3% 17 Assume that the nominal interest rate on a loan contract is 6%, and the inflation rate is 5%. Calculate the real interest rate. a 4% b 1% c 8% d 3% 18 Which of the following is helped by inflation? a Borrowers b Savers c People living on fixed incomes d Lenders

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Study Game - Topic 2.4 - Price Indices and Inflation, Topic 2.5 - Costs of Inflation

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Study Game - Topic 2.4 - Price Indices and Inflation, Topic 2.5 - Costs of InflationVersión en línea

por Zachary Foust

Define price level.

Define consumer price index (CPI).

Define inflation rate.

Define real wages.

Define real interest rate.

Define market basket.

Define base year.

Define inflation.

Define deflation.

Define disinflation.

Calculate the consumer price index (CPI) in 2024. Round to the nearest tenth.

Assume the price level in 2020 is 258.8, and the price level in 2021 is 271.0. Calculate the inflation rate in 2021.

Assume the price level in 2021 is 271.0, and the price level in 2022 is 292.7. Calculate the inflation rate in 2022.

Assume the price level in 2022 is 292.7, and the price level in 2023 is 304.7. Calculate the inflation rate in 2023.

Assume the price level in 2023 is 304.7, and the price level in 2024 is 313.7. Calculate the inflation rate in 2024.

Assume that the nominal interest rate on a loan contract is 6%, and the expected inflation rate is 2%. Calculate the real interest rate.

Assume that the nominal interest rate on a loan contract is 6%, and the inflation rate is 5%. Calculate the real interest rate.

Which of the following is helped by inflation?