Inflation

The main reason why the price of goods and services increase overtime is because of

• deflation

• government controls

• inflation

• all of the above

Inflation is measured by using what is called

• Consumer Purchasing Program (CPP)

• Consumer Price Index (CPI)

• Fixed Income Index (FII)

• Production Possibilities Curve (PPC)

A common type of inflation is (select all that apply)

• demand-pull inflation

• demand and supply inflation

• cost-push inflation

• fixed income inflation

When inflation is high, the loss of buying power especially hurts those

• that have high paying jobs

• that own homes

• that are on fixed incomes

• All of the above

The group of goods and services selected and used to measure inflation is referred to as

• the Big Basket

• the Market Basket

• the Economic Basket

• All of the above

When there is inflation it affects

• savers

• borrowers

• people on a fixed income

• All of the above

Demand-pull inflation often occurs because a government

• is not printing enough money

• is creating too few regulation

• prints too much money

• none of the above

______________ is a measure of price change in a selected market basket of goods and services such as gasoline, food, clothing, and automobiles

• Consumer Price Index

• Market Basket

• Cost-push Inflation

• Demand-pull Inflation

_____________ is when the the buying power of money goes down and prices go up.

• Deflation

• Inflation

• Fixed Income

• Market Basket

__________ is when prices rise and are pushed up because the cost of resources and labor increases

• Deflation

• Demand-pull Inflation

• Cost-push Inflation

• Inflation