Inflation

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

What is inflation?

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

Most countries try to maintain an inflation rate of ______ per year.

• One percent or less

• Two to three percent

• Four to five percent

• Six to seven percent

The _______ considers the weighted averages of a group of consumer goods and services.

• Consumer price index

• Aggregate supply

• Producer price index

• Aggregate demand

What is inflation?

• Increase general price level of goods and services

• Increase price level from one private organisation

• Decrease general price level of goods

• Increase general price level of services

Main features of Inflation are:

• Prices rise continuously over long period of time

• Prices rise at a faster rate

• Rise in prices is same for all goods and services

• Rise in prices is not same for all goods and services

Index number that represents general change in wholesale prices of commodities is ____________.

• Consumer Price Index

• Wholesale Price Index

• Food Basket

_______indicates a change in the general price level in the economy.

• WPI

• CPI

• Food Basket

In India ______ is considered as the appropriate indicator of Inflation

• CPI

• WPI

• GDP

CPI is also known as:

• Cost of Living Index Number

• Cost of Life Index Number

• Retail Price Index Number

• Price of Living Index Number