inflation

What is inflation?

• A general decrease in prices and increase in the purchasing value of money.

• A general increase in prices and fall in the purchasing value of money.

• An increase in the price of specific luxury items.

• A sudden drop in the stock market.

What is hyperinflation?

• A period of stable economic growth.

• Inflation that is rapid, dramatic, and out of control.

• A decrease in the overall price level in an economy.

• A gradual increase in the purchasing power of money.

How does inflation affect purchasing power?

• It increases the amount of stuff you can purchase with a unit of currency.

• It has no effect on the amount of stuff you can purchase.

• It decreases the amount of stuff you can purchase with a unit of currency.

• It only affects the purchasing power of luxury goods.

What is the Consumer Price Index (CPI) primarily used to measure?

• The price of specific technological advancements.

• The average price of a standard group of goods and services.

• The total value of a country's exports.

• The amount of money printed by the government.

Are you enjoying the video lesson?

• Yes

• No

According to the Quantity Theory of Inflation, what can cause prices to go up and purchasing power to go down?

• A decrease in the overall supply of goods.

• Too much currency available in the economy.

• A reduction in government spending.

• An increase in the production efficiency of goods.