Inflation quiz

Last year the inflation rate was 17,6%. Steve expects these year's inflation to be around 5%. What type of expectation does he uses?

• Naive

• Adaptive

• Rational

• Can be adaptive and rational as well

Pensioner's inflation is usually

• Smaller than the general inflation (CPI)

• Higher than the general inflation (CPI)

• Same as the general inflation (CPI)

• No way to tell

Subjective (perceived) inflation is usually higher than the actual because

• People do not trust the government

• People are not good at math

• People remember price increases better than price decreases

• Media spreads fake news

Can inflation be forecasted from past data?

• No

• Yes

• It depends on the country

• Monthly inflation yes, annual inflation no

What do we define hyperinflation?

• When the annual inflation rate is over 50%

• When the monthly inflation rate is over 50%

• When the daily inflation rate is over 50%

• When it is impossible to calculate inflation