Causes of 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

Demand-Pull inflation can be describes as too many _________ chasing too few __________

• jobs, workers

• consumers, producers

• dollars, goods

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 2 types of inflation are there?

• demand pull and cost push
• demand pull and supply glut
• supply glut and demand side
• supply inflation and demand inflation

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

According to the wage-price spiral, if a company gives a worker a raise in pay, what must they also do?

•  Raise the price of their products
• go out of business
• lower the price of their products

GDP that is adjusted for inflation

• real GDP
• nominal GDP
• price level
• net national product

Fiscal policy is

• decisions the government makes to fight inflation
• actions the the Federal Reservice takes to control money supply
• does not help with inflation

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