Inflation and CPI Quiz

What is inflation?

• A rise in the average price level of all the goods and services produced in an economy.

• An increase in the prices of important goods and services that people need on a regular basis.

• A sustained increase in average wages.

• A sustained decrease in the amount of goods and services available.

What is deflation?

• A negative inflation rate.

• An inflation rate just above zero.

• A decrease in the inflation rate.

• Anytime the inflation rate shifts downward.

Which bureau collects data each month from various establishments on prices of goods and services?

• Bureau of Financial Management

• Bureau of Statistics

• Bureau of Labor Statistics

• The Federal Reserve

What is the most common measure of inflation?

• Gross Domestic Product (GDP)

• Inflation Index (II)

• Consumer Price Index (CPI)

•   Everyday Price Index (EPI)

The Federal Reserve has an inflation goal of ___ percent.

• 0

• 1

• 2

• 3

How often are CPI data released?

• Every day

• Every week

• Every month

• Every year