IG Econ - Inflation

What is the term for a sustained increase in the general price level of goods and services in an economy over time?

• Deflation

• Inflation

• Disinflation

• Recession

What is the term for a sustained fall in the general price level of goods and services?

• Inflation

• Deflation

• Stagflation

• Hyperinflation

What is the name of the index that measures changes in the price level of a basket of goods and services over time?

• GDP

• CPI

• PPP

• PES

What is the term for a collection of goods and services used to track changes in the cost of living?

• Basket of goods

• Fiscal policy

What is the term for the process of assigning importance to items in the CPI based on how much households spend on them?

• Indexation

• Weighting

• Deflation

• Investment

What do we call inflation caused by increased demand in the economy?

• Cost-push inflation

• Demand-pull inflation

• Disinflation

• Structural inflation

What is the term for inflation caused by rising production costs, such as wages or raw materials?

• Demand-pull inflation

• Cost-push inflation

• Hyperinflation

• Imported inflation

What is the term for the reduction in the value of money, meaning each unit of currency buys fewer goods and services?

• A) Purchasing power

• B) Price level

• C) Inflation

• D) Real GDP

What is the term for the year used as a point of comparison for prices in other years when constructing a price index?

• Reference year

• Base year

• Fiscal year

• Calendar year

What is the term for a decrease in the rate of inflation, where prices are still rising but at a slower rate?

• Disinflation

• Deflation

• Hyperinflation

• Stagflation