Chapter 13 Practice Flashcard

Front

Who is most likely to be hurt by inflation? Options: someone who borrowed money, a retiree on a fixed income, a business owner, the U.S. government

Back

a retiree on a fixed income

Front

What causes cost push (aggregate supply) inflation?

Back

A rise in production costs passed on to consumers.

Front

What causes demand pull (aggregate demand) inflation?

Back

a rise in price level due to an increase in consumption

Front

What is inflation?

Back

rise in general prices

Front

What 2 main types of inflation are there?

Back

demand pull (aggregate demand) and cost push (aggregate supply)

Front

What is the definition of deflation?

Back

decrease in the average price of goods and services

Front

According to the wage-price spiral, if a company gives a worker a raise in pay, what must they also do?

Back

Raise the price of their products

Front

Walter gets a 2% pay increase. The inflation rate is 3%. He has been...

Back

hurt by inflation.

Front

Which of these is not a cause of poverty in The United States? Lack of Education, Location (inner cities), racial and gender discrimination

Back

lowering of nation's GDP

Front

The percentage of people living in households that have incomes below the poverty threshold.

Back

poverty rate