Understanding Inflation and Its Impact

Understanding Inflation and Its Impact

Assessment

Interactive Video

Social Studies, Business

7th - 10th Grade

Practice Problem

Hard

Created by

Aiden Montgomery

FREE Resource

The video explains how inflation affects daily life by reducing purchasing power, impacting employment, and influencing the economy. It highlights the importance of monitoring inflation through the IPCA index and discusses the role of the central bank in controlling inflation via the SELIC rate. The video concludes with a preview of the next episode, which will delve deeper into the relationship between SELIC and inflation.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the general effect of inflation on the economy?

It decreases the overall price levels.

It stabilizes the price levels.

It increases the overall price levels.

It has no effect on price levels.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does inflation affect the purchasing power of individuals?

It stabilizes purchasing power.

It increases purchasing power.

It has no effect on purchasing power.

It decreases purchasing power.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a direct consequence of rising inflation on daily expenses?

Decrease in food prices.

Increase in the cost of essential services.

Decrease in fuel prices.

Stabilization of rent prices.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might companies respond to rising inflation?

By increasing production.

By reducing prices.

By reducing production or increasing prices.

By hiring more employees.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential impact of inflation on employment?

No change in employment rates.

Increase in job opportunities.

Reduction in job opportunities.

Stabilization of employment rates.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does inflation affect fixed-income investments?

It increases the real interest rate.

It has no effect on the real interest rate.

It decreases the real interest rate.

It stabilizes the real interest rate.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the IPCA?

A measure of employment rates.

A measure of inflation in Brazil.

A measure of economic growth.

A measure of interest rates.

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