Inflation Quiz

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

• Deflation

• Government Controls

• Inflation

• All of the above

The Bureau of Labor Statistics measures inflation by using what?

• Consumer Purchasing Program (CPP)

• Consumer Price Index (CPI)

• Fixed Income Index (FII)

• None of the above

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

• Demand-Pull Inflation

• Demand and Supply Inflation

• Cost-Push Inflation

• Fixed Income Inflation

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

• Big Basket

• Market Basket

• Economic Basket

• All of the above

When there is high inflation, 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

When there is inflation it affects...

• those that save their money

• the cost of borrowing and people with credit card balances

• people on fixed incomes

• All of the above

How often does deflation occur in the United States?

• Often

• Rarely

• Every 10 years

• Never

Demand-Pull Inflation often occurs because the government...

• is not printing enough money

• is creating too few regulations

• is printing too much money

• None of the above

By comparing the price change of a market basket of goods and services over time, we can determine the rate of inflation or deflation.

• True

• False

Paying a higher price for the resources needed to produce your product pulls down the price of that product which causes inflation.

• True

• False