Economics First C A

Persistent increase in general price level is called

• Deflation

• Price fluctuation

• Inflation

• Stagflation

Mention any two types of inflation you know_______ and ______

What causes cost push inflation

• An increase in demand for goods and services
• An increase in supply
• A rise in production costs passed on to consumers
• A fall in the price of imports

What 2 types of inflation are there?

• demand pull and cost push
• demand pull and supply glut
• supply glut and demand side
• supply inflation and demand inflation

Demand-Pull inflation can be describes as too many _________ chasing too few __________

• jobs, workers
• consumers, producers
• dollars, goods

_______indicates a change in the general price level in the economy.

• WPI

• CPI

• Food Basket

Mention four causes of inflation

Write down the answer to the audio

The relationship between the general price level and value of money is (a)  

During period of inflation, the purchasing power of money is

• Eroded

• Increased

• Multiplied

• Escalated