Inflation Quiz 4/18

Inflation occurs whenever:

• total demand increases
• the price of any given good or service rises
• the average price of most goods and services rises
• the tax rate is lower than the government spending rate

A list of items in specific amounts that are used to track the progress of inflation in an economy or market:

• Consumer index
• Consumer basket
• Market index
• Household good list

A measure of the average change of price for two consumer baskets of goods/services:

• Consumer Quality Change
• Buyer Purchasing Power
• Consumer Price Index
• Market basket ratio

A period of time that the price of a good rises far above what the item's real value is:

• Nominal period
• Real Exchange Price
• Economic skewing
• Economic bubble

The lowest wage per hour that a worker may be paid, as mandated by federal law:

• Maximum wage
• Minimum wage
• Minimum rate
• Nominal rate

Whenever the market prices of services and goods are going to fall continuously it is called:

• Inflation
• Decreasing index
• Deflation
• Low price index

When too many people are hunting down too few goods, this is called:

• Cost-pull inflation
• Demand-pull inflation
• Deflation
• Stagflation

Which of the following MUST decline in order to slow demand-pull inflation?

• Spending
• Production capacity
• Taxes
• Saving

When inflation is caused because of a rise in the value of production factors, it is called:

• Cost-push inflation
• Demand-pull inflation
• Demanding inflation
• Stagflation

When making historical monetary comparisons, if you want to adjust for inflation you will need to use what?

• "Nominal" dollars
• "Real" dollars
• Investment analysis
• Market Value