Inflation

The percent change in prices from year to year.

• Price Indices

• Inflation Rate

• Market Rate

• GDP Rate

Who is Hurt by Inflation? Pick 3

• Lenders

• Savers

• Borrowers

• People with fixed incomes

People who are helped by inflation. Pick 2.

• Borrowers

• Lenders

• A business where the price of the product increases faster than the price of resources

• Savers

How is inflation measured?

• By comparing average prices of all goods and services produced

• Consumer Price Index

• Producer Price index

• Government Price Index

A decrease in general price level is called...

• Hyperinflation

• Low inflation

• Deflation

• Disinflation

Inflation caused by a rise in wage rates would be classified as..

• Demand pull

• Demand push

• Cost push

• Cost pull

Inflation caused by an increase in consumption would be classified as..

• Demand pull

• Demand push

• Cost push

• Cost pull

A consequence of high inflation is that it benefits borrowers.

• True

• False

Which of the following measure of inflation includes mortage costs?

• CPI

• RPI

• CPIH

• RPIH

As at October 2021 what was the CPI rate of inflation?

• 3.1%

• 4%

• 4.2%

• 3.2%