test inf

The _______ considers the weighted averages of a group of consumer goods and services.

• Consumer price index

• Aggregate supply

• Producer price index

• Aggregate demand

_________ is a decrease in the rate of inflation.

• Hyperinflation

• Disinflation

• Deflation

• Stagflation

__________ refers to a decrease in price level.

• Hyperinflation

• Disinflaation

• Deflation

• Stagflation

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

• Demand-pull inflation

• Cost-push inflation

• Demand-push inflation

• Cost-pull inflation

What causes inflation?

• inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply

• inflation occurs when there's an increase in production costs OR when demand for products and services increases slower than supply

• inflation occurs when there's a slower increase in production costs OR when demand for products and services increases faster than supply

The rate of inflation is most commonly measured by use of

• a price deflator

• the GDP deflator

• the consumer price index

• all of the above

The consumer price index measures 

• the cost of buying a fixed basket of goods and services, and calculating how this cost changes from year to year

• the cost of buying a basket of goods and services, which changes from year to year depending on the price level

• the cost of buying a basket of goods and services, which changes from year to year depending on consumer tastes and preferences

• all of the above, depending on what the CPI is trying to measure

Demand-pull inflation and cost-push inflation differ in that

• demand-pull leads to lower real GDP and cost-push to higher real GDP

• demand-pull leads to higher real GDP and cost-push to lower real GDP

• demand-pull leads to greater unemployment and cost-push to lower unemployment

• a combination of the above, depending on the size of AD and SRAS shifts

What is inflation?

• Inflation is an social studies term that describes a general increase in prices 📈 and a fall in the purchasing power of money 📉.

• Inflation is an economic term that describes a general increase in prices 📈 and a fall in the purchasing power of money 📉.

• Inflation is an economic term that describes a general increase in prices 📈 and a increase in the purchasing power of money 📉.

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity