Inflation

Inflation is ....

• A general increase in prices and fall in the purchasing value of money

• Simultaneous growth of prices and wages

• The process of rising and falling prices of goods and services

What could be the reason for an inflation increase?

• Decrease in aggregate demand

• Excessive emission of money

• Increase in the price of raw materials for the production of goods

• Decrease in income

• Increase in income

Price Index

• Measurements that show how the average amount of producing a standard group of goods change over time

• Measurements that show how the average price of a standard group of goods change over time

Which of these indices does not exist?

• Pancake index

• Sandwich Index

• Olivier Salad

• Towel Index

What is 'Purchasing power'

• The amount of stuff you can buy with a unit of currency

• The amount of money you earn every month

• The amount of goods you could buy if you converted a percentage of inflation into money

Which of the following countries had hyper inflation? (several answers)

• Zimbabwe

• Japan

• Venezuela

• Canada