LU 7 Selected Economic Indicators

Question 1

Inflation

Answer 1

• Sustained increase in the general price level over a period of time
• A decline in purchasing power or real value of money

Question 2

Consumer price index (CPI)

Answer 2

Series of numbers showing how the average price level of goods and services bought by a typical consumer or household changes over time.

Question 3

How is inflation measured

Answer 3

Changes in the consumer price index

Question 4

Economically active population

Answer 4

Persons between the ages of 15 and 65

Question 5

Official unemployment rate

Answer 5

Calculated as the percentage of the economically active population which is unemployed