GDP/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

An index that measures the prices of a market basket of goods that typical consumers purchase.

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

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

Which of the following groups suffer from high inflation

• Borrowers
• Lenders
• Taxpayers
• Property Investors

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

__________ refers to a decrease in price level.

• Hyperinflation

• Disinflaation

• Deflation

• Stagflation

Cars, TVs, computers that are purchased by individuals belong in which part of the GDP formula?

GDP = C+I+G+NX

• Consumption Expenditures

• Investment Expenditures

• Government Expenditures

• Net Imports

Tanks and roads belong in which part of the GDP formula?

GDP = C+I+G+NX

• Consumption Expenditures

• Investment Expenditures

• Government Expenditures

• Net Imports