Inflation vs Devaluation

What is inflation?

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

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

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

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government

What the definition of deflation? 

• decrease in the average price of goods and services
• occurs when the price of goods and services rise
• increase in prices
• I don't know

What causes demand pull inflation?

• rise in price due to a decrease in supply
• a rise in price level due to an increase in consumption
• a rise in price due to an increase in the cost of production
• a decrease in price due to a decrease in supply

Which of the following groups suffer from high inflation

• Borrowers
• Lenders
• Taxpayers
• Property Investors

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
• A fall in the price of imports

Which of the following explains the relations between the average price of aggregate supply and the quantity demanded?

• Aggregate demand

• Price level

• Producer price index

• Consumer price index

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

• Demand-pull inflation

• Cost-push inflation

• Demand-push inflation

• Cost-pull inflation