Inflation Kelly

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

__________ occurs in the economy when unemployment and inflation are both high.

• Hyperinflation

• Disinflation

• Deflation

• Stagflation

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

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

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 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

What is 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
• decrease in GDP

What is the approximate current rate of inflation in the US?

• 1%

• 5%

• 7%

• 12%

What countries experienced hyper inflation since WWII?

• Egypt and Israel

• US and Canada

• Hungary and Zimbabwe

• India and Bangladesh