Quiz 12 (O Level Unit 6)

1. Consumer Price Index(CPI) measures changes in ______________________ of consumer goods over a year.

2. When calculating the CPI, who decides what goods to include in the ‘basket of goods’?

3. ___________ means a sustained increase in the average or general price level in an economy.

4. An increase in the aggregate demand in the economy will cause inflation if the suppliers are unable to increase supply to match the increase in demand. This is known as ______________.

5. Rising in the prices of raw materials and other costs of production will make the producers and suppliers charge higher prices in-order to cover the increased costs. This situation is known as _________________.

6. ___________ is the opposite of inflation. It refers to a general fall in the level of prices.

7. If unemployment happens due to falling aggregate demand in a recession, it is called _____________ unemployment.

8. ____________________ is the market value of all officially recognized final goods and services produced within a country in a given period of time.

9. ______________ is the increase in the amount of the goods and services produced by an economy over time.

10. Among the following, what could cause a reduction in aggregate supply?