Inflation Review

If CPI last year was 177 and the CPI this year is 186, what is the rate of inflation?

• 8%
• 5%
• 6%

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• The US Government

What is demand pull inflation?

• a decrease in price due to a decrease in supply
• a rise in price level due to an increase in demand
• a decrease in price due to an increase in supply

This group of people benefit from inflation:

• Lenders
• Savers
• Borrowers

A situation of rising prices resulting from increases in the cost of production.

• Consumer Price Index
• Cost-push Inflation
• Demand-pull inflation

The quantity of goods and services a person can buy with a given amount of money.

• Bank
• Inflation
• Buying Power

The two main types of inflation are demand-pull and cost-push.

• True
• False

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

• Consumer Price Index
• Federal Reserve
• Bank

A general rise in overall prices is called:

• Deflation
• Inflation
• Consumer Price Index

What causes cost push inflation?

• An increase in demand for goods and services
• An increase in supply
• A rise in production costs passed on to consumers