Inflation

According to the Demand-Pull Theory, inflation is caused by...

• Producers raising prices to make up for increased costs

• People demanding too much of a good or service

• Too much money being in circulation

• The market basket being full

If inflation outpaces wages...

• The real income of people will increase

• There will be no change

• The real income of people will decrease

• People will have more purchasing power

A general increase in prices is called...

• inflation

• stagflation

• deflation

• impersonation

A healthy inflation rate is between...

• 10-20%

• Less than 5%

• Greater than 5%

• 1-3%

Question 5

• 1.2

• 1.4

• 1.6

• 1.8

This is a collection of goods purchased by a city dweller to determine the level of inflation

• Demand Pull

• Cost Push

• Market Basket

• Good Basket

If there's too much money in circulation,it could lead to inflation

• Cost Push

• Demand Pull

• Quantity

• CPI

Wages (and other costs) rise,resulting in higher prices etc.

• Quantity

• Cost Push

• Demand Pull

• CPI

When Inflation rises, your purchasing power...

• filler

• filler