FEE Inflation

What is the term used to account for inflation when calculating GDP?

• Real

• Weighted

• Consumer Price Index

• GDP per capita

Prices of eggs and bacon have increased, forcing a local diner to increase their prices.

• Cost Push Inflation

• Demand Pull Inflation

More people working from home causes many people to buy desks and shelving, leading furniture stores to increase prices.

• Cost Push Inflation

• Demand Pull Inflation

Discourages spending and investment because consumers, expecting prices to fall further, delay purchases.

• Deflation

• Disinflation

• Inflation

The overall price level is still rising, but at a slower pace than before.

• Deflation

• Disinflation

• Inflation

A general, sustained upward movement of prices for goods and services in an economy.

• Deflation

• Disinflation

• Inflation

Most comprehensive measurement of inflation because it doesn't focus on a fixed basket of goods.

• GDP Deflator

• Consumer Price Index

• Personal Consumption Expenditures Index

This measurement is criticized for overstating inflation because it uses a fixed basket of goods.

• GDP Deflator

• Consumer Price Index

• Personal Consumption Expenditures Index

Captures inflation across a range of consumer expenses and reflects changes in consumer behavior when some prices rise.

• GDP Deflator

• Consumer Price Index

• Personal Consumption Expenditures Index

Which post WWII US President used a temporary freeze on wages and prices to control inflation and stabilize the dollar?

• President Clinton

• President Eisenhower

• President Nixon

• President Kennedy