Inflation Quiz

What is inflation?

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

What 2 types of inflation are there?

• demand pull and cost push
• demand pull and supply glut
• supply glut and demand side
• supply inflation and demand inflation

If real interest rates are rising at 5% and the nominal interest rate is rising at 9%, what was the inflation rate?

• 4%
• -4%
• -14%
• 14%

If the CPI is 105 in 2006 and 115 in 2007, what is the inflation rate during that time?

• 8.7%
• 9.5%
• 10%
• 91.3%