Unit 2a

Front

What is inflation?

Back

When the general level of prices rise

Front

Is all inflation bad?

Back

No, a very small increase can stimulate the economy

Front

What does the Consumer Price Index (CPI) measure?

Back

The prices of a set of goods over a period of time

Front

What is GDP?

Back

The total dollar value of all finished goods and services produced in a country in a given time period

Front

__________ refers to a decrease in price level.

Back

Deflation

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

When prices increase very rapidly

Back

Hyperinflation

Front

A good that lasts three years or more when used on a regular basis is called a

Back

Durable Good

Front

Which of the following is considered a nondurable good? John Deere tractor, automobile, dishwasher, toilet paper

Back

toilet paper

Front

Which of the following is a durable good?
Options: washing machine, t-shirt, chocolate bar, shampoo

Back

washing machine