Inflation Review Flashcard

Front

What is inflation?

Back

a general rise in prices

Front

The _______ is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Back

Consumer Price Index

Front

Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Options: Demand-pull inflation, Cost-push inflation, Demand-push inflation, Cost-pull inflation

Back

Demand-pull inflation

Front

Fill in the blank: When inflation is high the _______________ of the dollar decreases.

Back

purchasing power

Front

Demand-Pull inflation can be described as too many _________ chasing too few __________

Back

dollars, goods

Front

Which of the following groups suffer from high inflation? Borrowers, Lenders, Taxpayers, Property Investors

Back

Lenders

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

GDP that is adjusted for inflation

Back

real GDP

Front

What causes cost-push inflation?

Back

A rise in production costs passed on to consumers

Front

Which one of these correctly describes how lenders and borrowers are affected by inflation? Options: lenders hurt, borrowers helped, lenders hurt, borrowers hurt, lenders helped, borrowers hurt, lenders helped, borrowers helped

Back

lenders hurt, borrowers helped