The main reason why the price of goods and services increase overtime is because of

• government controls.

• inflation

• deflation

The Bureau of Labor Statistics measures inflation by using what is called the

• Fixed Income Index (FII).

• Consumer Price Index (CPI).

• Consumer Purchasing Program (CPP).

Two types of inflation are (select all which apply)

• demand-pull inflation.

• demand and supply inflation

• cost-push inflation

• fixed income inflation

When there is high inflation, the loss of buying power, especially hurts those

• with high paying jobs.

• who owns their homes.

• who are on fixed incomes.

The group of goods and services selected and used to measure inflation is referred to as a/an

• Big Basket.

• Market Basket.

• Economic Basket.

When there is inflation it affects (Select all that apply)

• people on a fixed income.

• the cost of borrowing and people with a credit card balance.

• savers.

In the U.S., deflation occurs

• every ten years.

• often

• rarely

• never

Demand-pull inflation often occurs because a government

• prints too much money.

• is not printing enough money.

• is creating too few regulations.

____________ By comparing the price change of a market basket of goods and services over time, we can determine the rate of inflation or deflation.

• True

• False

____________Higher prices of resources which are needed to produce goods or services pulls down all prices, thus, causing inflation.

• True

• False