inflation

What is inflation?

• rise in all prices
• rise in most prices
• rise in some prices
• rise in general prices

The _______ considers the weighted averages of a group of consumer goods and services.

• Consumer price index

• Aggregate supply

• Producer price index

• Aggregate demand

What is inflation?

• Increase general price level of goods and services

• Increase price level from one private organisation

• Decrease general price level of goods

• Increase general price level of services

________ consist of Food Items of daily individual consumption.

• CPI

• WPI

• GDP

• Food Basket

In ________inflation prices rise about 2% annually.

• Creeping

• Walking

• Running

• Hyper

________ inflation brings a total collapse of the Economy.

• Creeping

• Galloping

• Running

• Walking

In _________ Inflation prices rise very fast at double or triple rate.

• Walking

• Running

• Hyper

• Creeping

Refers to an increase in the general price level associated with an increase in the cost of production.

• Supply Inflation

• Cost Push Inflation

• Imported Inflation

• Demand Pull Inflation

WHO BENEFITS AND WHO LOSES WHEN UNEXPECTED INFLATION OCCURS?

• creditors benefit; debtors lose

• creditors lose; debtors benefit

Inflation Rate =

• CPI Current Year - CPI of Previous Year/CPI of Previous Year X 100

• CPI of Base Year - CPI of Current Year/CPI of Current Year X 100

• PPI / CPI X 100

• PPI X CPI / 100