Quiz 12 (O Level Unit 6) This quiz is from O level Unit 6 (Economic Indicators). 1. Consumer Price Index(CPI) measures changes in ______________________ of consumer goods over a year. average quality general usage average prices profitability 2. When calculating the CPI, who decides what goods to include in the ‘basket of goods’? parliament members NGOs forces of demand and supply government statisticians 3. ___________ means a sustained increase in the average or general price level in an economy. Inflation Unemployment Budget deficit Budget surplus 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 ______________. demand-deficiency demand-pull inflation law of demand cost-push inflation 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 _________________. demand-pull inflation budget-surplus cost-push inflation risk aversion strategy 6. ___________ is the opposite of inflation. It refers to a general fall in the level of prices. Deflation Scarcity Unemployment Stagnation 7. If unemployment happens due to falling aggregate demand in a recession, it is called _____________ unemployment. structural frictional cyclical seasonal 8. ____________________ is the market value of all officially recognized final goods and services produced within a country in a given period of time. Gross Domestic Product Economic growth Net National Product Investment 9. ______________ is the increase in the amount of the goods and services produced by an economy over time. Unemployment Inflation Recession Economic growth 10. Among the following, what could cause a reduction in aggregate supply? Higher crude oil and gas prices Appreciation of local currency reduced interest rate increased government spending Loading … Question 1 of 10