Understanding Inflation

What year was the Big Mac introduced, and what was its initial cost?

• 1972, 55 cents

• 1967, 45 cents

• 1965, 30 cents

• 1970, 50 cents

What is the primary tool used by governments to measure inflation?

• Gross Domestic Product

• Interest Rate

• Consumer Price Index

• Unemployment Rate

Which country experienced hyperinflation, leading to the printing of trillion-dollar notes?

• Germany

• Zimbabwe

• Hungary

• Venezuela

Why is a small amount of inflation considered beneficial for an economy?

• It encourages economic growth

• It decreases the value of money

• It raises the cost of living

• It increases unemployment

How does inflation affect savings over time?

• Converts them into investments

• Has no effect

• Increases their value

• Decreases their purchasing power