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WorksheetsInflation
Total questions: 17
Worksheet time: 17mins
In a country that has a low rate of inflation is that a good economy or a bad economy?
Good economy
Bad economy
What is one of the MAIN types of inflation?
Core inflation
Galloping inflation
Wage inflation
Asset inflation
An increase in the general price level of all goods and services in the economy- everything we buy and consume is the definition of?
purchase price inflation
Buyer price inflation
Customer price inflation
Consumer price inflation
The _______ is the average price of all goods and services sold in the economy calculated over a given period of time.
General Price Level
Consumer Price level
Price level
Average price level
What is CPI?
Consumer price index
Costumer pay index
Consumer price Income
Costumer pay income
In an economy of fiat money, which is an economy where the currency;
is controlled by the Federal Reserve
is worth less
is worth more
is controlled by a central bank
Who dictates the money supply?
The Federal Bank
The Federal Reserve
The Federal Government
The Legislative Branch
What is the Federal Reserve's primary goal?
To keep inflation at a low and steady rate.
To have full employment.
Economic growth.
Economic Freedom.
If the rate of inflation rises above their target level what does the Federal Reserve do?
Increasing bond prices
They put more money into circulation
Decreases interest rates
They take excess money out of circulation
If the general price level increases by the way of an excess in the money supply what happens?
Consumer purchasing power decreases
Consumer purchasing power increases
Customer power increases
Purchasing power increases
Inflation is...
A general decease in prices and rise in the purchasing value of money.
A decrease in the cost of living.
A general increase in prices and fall in the purchasing value of money.
A decease price of goods and services
What is the most common cause of inflation?
Pull-demand inflation
Demand-pull inflation
Cost-push inflation
Push-cost inflation
What is the monetary policy?
It is a policy used by the government to help with inflation, consumption, growth and liquidity.
It is a policy made by the Federal Reserve to help the economy.
Demand-Pull inflation is...
When price levels rise because of an imbalance in the aggregate supply and demand.
When price levels decrease because of an imbalance in the aggregate supply an demand.
What is Cost-push inflation?
The decrease prices of the factors of the production leads to decreased supply of these goods.
The increase prices of the factors of the production leads to a decreased supply of these goods.
What is commonly described as "too much money chasing too few goods."
Demand-pull inflation
Cost-push inflation
Can you measure inflation multiple ways?
True
False
