Knowledge Base

← French, European, and International Institutional and Regulatory Framework

Questions

Which measure of GDP is used to compare economic growth across different periods without the effect of inflation?

Nominal GDP
Real GDP
GDP deflator
CPI

Which inflation indicator is preferred by the Federal Reserve for its monetary decisions?

The Consumer Price Index (CPI)
The PCE (Personal Consumption Expenditures) index
The GDP deflator
Core inflation

What was the record inflation rate reached in October 2022 in the United States?

5.25-5.50%
7.7%
4.25-4.50%
10.6%

What does two consecutive quarters of negative real GDP growth signify?

A period of high inflation
A technical recession
Imminent monetary easing
A rise in interest rates

The ECB began lowering interest rates as soon as inflation started to decline in 2023.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Real GDP
GDP deflator
CPI
PCE index
Categories:

Economic activity

Inflation

Inflation above 2% always justifies an interest rate increase by central banks.

True
False

GDP deflator

Click to see answer