Inflation

Inflation

​ORAL EXPRESSION ECONOMICS & COMMERCE

May Ling González​

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Fill in the Blanks

Multiple Choice

A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in:

• the increase of an average price level of a basket of selected goods and services in an economy over some period of time.

• The Consumer Price Index (CPI)

• hoarding

• decrease in taxation

Poll

To understand inflation one needs to consider market baskets that include:

• Utilities like electricity and transportation

• commodities like food, grains, metal, fuel

• Services like health care, entertainment and labor

• Consumer Price Index (CPI)

Multiple Select

Some of the consequences of inflation are:

• Loss of purchasing value

• Impact in the general cost of living

• deceleration in economic growth

• The central bank issues more money

Poll

Some causes of inlfation are:

• An increase in the supply of money

• Reduction in the value of the currency

• Tax reduction

Poll

There are three types of inflation:

• Demand pull, cost push and built in

• economic, political and cultural

• international, local and regional