12.1 Inflation and Deflation

Front

What is deflation?

Back

Decrease in prices

Front

Which of the following is a cause of inflation? Increased demand, Decreased demand, Stable demand, None of the above.

Back

Increased demand

Front

What happens to the cost of living during inflation?

Back

Increases

Front

During deflation, the cost of living tends to ______.

Back

Decrease

Front

Deflation can lead to an increase in the purchasing power of ______.

Back

Money

Front

Which component is subtracted from the CPI later year in the inflation rate formula?

Back

CPI earlier year

Front

What was the approximate Consumer Price Index (CPI) in 1980?

Back

100

Front

Fill in the blank: The Consumer Price Index (CPI) increased by approximately ____ points from 1990 to 2010.

Back

100

Front

What is demand-side inflation?

Back

It occurs when an increase in the price level originates on the demand side of the economy.

Front

Supply-side inflation occurs when an increase in the price level originates on the ______ side of the economy.

Back

supply