Inflation

Inflation

Macroeconomics

Multiple Choice

Most economists believe that some inflation will occur when the economy is growing.

• True

• False

Multiple Select

Two causes of inflation are:

• Demand-pull

• Cost-push

• Command-lift

• Push-pull

Multiple Choice

HELPED by Inflation:

Those who RECEIVE ____________ payment

Those who MAKE ______________ payment

• Variable; Fixed

• Fixed; Variable

Multiple Choice

HURT by Inflation:

Those who RECEIVE ____________ payment

Those who MAKE ______________ payment

• Variable; Fixed

• Fixed; Variable

The BIG KEY to High Inflation

• Make major purchases with FIXED rate payments (i.e. cars, homes, loans etc.) 

• INVEST money in adjustable options (i.e. stocks, commodities – gold, collectables etc) 

Multiple Choice

What is inflation?

• rise in all prices
• rise in most prices
• rise in some prices
• rise in general prices

Multiple Choice

What the definition of deflation? 

• decrease in the average price of goods and services
• occurs when the price of goods and services rise
• increase in prices
• I don't know

Multiple Choice

An index that measures the prices of a market basket of goods that typical consumers purchase.

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation