SPCPA - Inflation

The value of a currency expressed in terms of the number of goods or services that one unit of money can buy.

• Inflation

• Value of Money

• Purchasing Power

• Deflation

1. 1. Inflation is the decrease in the price of goods and services.

2. 2. Inflation is the increase of purchasing power over time.

• Both statements are correct.

• Both statements are false.

• -Statement 1 is correct.

  -Statement 2 is false.

• -Statement 1 is false.

  -Statement 2 is correct.

This is one of the causes of inflation which occurs when an increase in the supply of money and credit stimulates the overall demand for goods and services to increase more rapidly than the economy's production capacity.

• Demand-Pull Inflation

• Cost-Push Inflation

• Built-in Inflation

• All are correct.

This is one of the causes of inflation which is a result of the increase in prices working through the production process inputs.

• Demand-Pull Inflation

• Cost-Push Inflation

• Built-in Inflation

• None of these.

This is a type of Price Index which is a measure that examines the weighted average of prices of a basket of goods and services that are of primary consumer needs. They include transportation, food, and medical care.

• Wholesale Price Index (WPI)

• Producer Price Index (PPI)

• Consumer Price Index (CPI)

• None of these.

True or False: Wholesale Price Index (WPI) measures and tracks the changes in the price of goods in the stages before the retail level.

• TRUE

• FALSE

What is the correct formula in computing the inflation rate?

• 
• 

The following are the advantages of inflation, except:

• Economic Growth

• Wage Adjustment

• Product Adjustment

• Uncompetitive Economy

The Philippines' inflation for December 2023 is __%,

bringing the full-year average inflation rate to __%.

• 3.9% and 6.0%

• 4.1% and 6.0%

• 4.5% and 3.9%

• 3.9% and 4.1 %

This is a term to describe rapid, excessive, and out-of-control general price increases in an economy.

• Inflation

• Deflation

• Hyperinflation

• Strategic Inflation