Inflation

Front

Which of the following describes inflation? Options: an intermediate good is produced utilizing the consumer price index, a service produced and used in another country, A decrease in the average price level of all products, An increase in the average price level of all products

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An increase in the average price level of all products

Front

Oliver noticed that the prices of goods and services in his town were generally increasing. This phenomenon is called

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inflation

Front

What does the inflation rate represent?

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The change in the cost of goods and services over time

Front

Inflation reduced people's purchasing power because

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the same amount of money buys fewer goods and services

Front

Which of the following is a cause of inflation? As demand increases, prices are "pulled" higher , As supply increases, prices are "pulled" higher , As demand decreases, prices are lowered , As supply decreases, prices are "pulled" higher

Back

As demand increases, prices are "pulled" higher

Front

Which of the following is a cause of inflation?
When producers lower prices to cover lower resource costs,
When producers raise prices to cover higher resource costs,
As demand decreases, prices are "pulled" higher,
As supply decreases, prices are "pulled" higher

Back

When producers raise prices to cover higher resource costs

Front

An overall decrease in purchasing power

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Affects those in fixed incomes

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AN increase in interest rates affects the overall

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Price of borrowing money

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What is deflation?

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decrease in the overall price level

Front

In which part of the GDP calculation does this fit? Australia exported $6 billion worth of goods in 2018, but imported $10 billion in goods.

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Net exports