EHC Macroeconomics Inflation

What is inflation?

• Rise in all prices

• Rise in most prices

• Rise in some prices

• Sustained rise in general prices

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

• Government Index

• Consumer Price Index

• National Bank

• Deflation

Demand-pull inflation is inflation caused by...

• Producer costs

• Producer demand

• Consumer costs

• Consumer demand

Who is more likely to be hurt by inflation?

• Someone who's salary is increasing

• Someone who's salary stays the same

What causes cost-push inflation?

• An increase in demand

• A fall in the price of imports

• A rise in production costs passed on to consumers.