Inflation Quiz

What word(s) come to mind when you hear "inflation"?

Which term is defined as "a measure of changes in the prices of goods and services commonly purchased by consumers?

• inflation

• producer price index (PPI)

• consumer price index (CPI)

• unemployment rate

Which term is best defined as "a sustained rise in the general price level or a fall in the purchasing power of money"?

• deflation

• inflation rate

• deflation rate

• inflation

What do we call the "measure of changes in wholesale prices"?

• Consumer Price Index (CPI)

• Producer Price Index (PPI)

• Gross Domestic Product (GDP)

• National Happiness Index (NHI)

Economists use the PPI and the CPI to calculate:

• unemployment rate

• Gross Domestic Product

• Economic Growth rate

• inflation rate

Inflation that occurs at more than 50% per month is called...

• creeping inflation

• healthy inflation

• hyperinflation

• deflation

Deflation occurs when...

• general price levels decrease

• general price levels stay constant

• general price levels increase

• general price levels rise and decrease, like a wave

A situation where total demand is rising faster than the production of goods and services is called:

• cost-push inflation

• Trumpflation

• Bidenflation

• demand-pull inflation

a situation where increases in production costs push up prices is called:

• demand-pull inflation

• hyperinflation

• greedflation

• cost-push inflation

A cycle in which increased wages lead to higher production costs, which in turn leads to higher prices, when then leads to demand for higher wages, is called a wage-______ spiral.