Inflation Basics

What is inflation?

• rise in all prices
• rise in most prices
• rise in some prices
• rise in general prices

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

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

What type of inflation do you have when aggregate demand increases faster than the economy can produce goods?

• Demand-pull inflation
• Structural inflation
• Cost-push inflation
• Frictional inflation

What type of inflation do you have when producers raise prices to cover higher resource costs?

• Cost-push inflation
• Deflation
• Demand-pull inflation
• Structural inflation

What type of inflation do you have when businesses exploit inflation to create excessive profits?

• Greedflation

• Hyperinflation
• Cost-push inflation
• Demand-pull inflation

What type of inflation do you have when products are getting smaller but consumers are charged the same or higher prices?

• Stagnantflation
• Upsizeflation
• Downsizeflation
• Shrinkflation

Which of the following types of inflation occurred after the main COVID pandemic ended?

• Cost-push

• Demand-pull

• Greedflation

• Shrinkflation