Economic Factors and Financial Decision-Making Quiz

An increase in the value of money

An increase in the general price level of goods and services in the economy (correct)

A decrease in the average prices of consumer goods and services

An increase in the price of a specific product

To calculate the GDP of a country

To determine the unemployment rate

To measure changes in the price of specific luxury goods

To measure changes in the average prices of consumer goods and services (correct)

To achieve an inflation rate of 2–3 per cent, on average, over time (correct)

To maintain zero inflation at all times

To achieve an inflation rate of 5–7 per cent

To allow inflation to fluctuate freely without a target

<p>By conducting quarterly surveys of the prices of items typically purchased by an average family</p> Signup and view all the answers

<p>Reduces the purchasing power of money and redistributes wealth</p> Signup and view all the answers