Inflation

Most economists believe that some inflation will occur when the economy is growing.

• True

• False

Inflation can best be defined as...

• A general increase in prices.

• An increase in prices of key items purchased by consumers.

• The increase in the value of fiat money

• The printing of too much paper money.

Two causes of inflation are:

• Demand-pull

• Cost-push

• Command-lift

• Push-pull

What 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
• I don't know

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

With inflation, AD > AS 

• True
• False

What causes demand pull inflation?

• rise in price due to a decrease in supply
• a rise in price level due to an increase in consumption
• a rise in price due to an increase in the cost of production
• a decrease in price due to a decrease in supply

Fiscal policy is

• decisions the government makes to fight inflation
• actions the the Federal Reservice takes to control money supply
• does not help with inflation

If aggregate demand rises faster than producers can supply goods services

• demand-pull inflation
• cost-push inflation
• inflation