Macro Chapter 6

Which term refers to a measure that examines the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

• Consumer price index

• Price level

• Real wage

• Nominal quantity

What is the general term for a statistical measure that shows changes in the price level of a basket of goods and services over time?

• Real interest rate

• Price index

• Deflation

• Indexing

Which term describes the percentage increase in the price level from one period to the next?

• Deflation

• Real quantity

• Rate of inflation

• Nominal interest rate

What is the term for a sustained decrease in the general price level of goods and services?

• Hyper inflation

• Indexing

• Deflation

• Price level

Which of the following best defines a nominal quantity?

• A value measured in current dollars

• A value adjusted for inflation

• A value indexed to a base year

• A value expressed in real terms

What is a real quantity?

• A value measured in current prices

• A value before inflation is considered

• A value adjusted for changes in the price level

• A value that is not indexed

Which process involves converting a nominal quantity into a real quantity by adjusting for inflation?

• Indexing

• Hyper inflation

• Relative price

• Deflating a nominal quantity

What does the term "real wage" refer to?

• Wage measured in current dollars

• Wage before taxes

• Wage after deductions

• Wage adjusted for inflation

Which term describes the practice of automatically adjusting payments or values by a price index to maintain purchasing power?

• Indexing

• Deflation

• Nominal interest rate

• Price level

What does "price level" refer to in macroeconomics?

• The price of a single good

• The lowest price in the market

• The highest price in the market

• The average of current prices across the entire economy