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WorksheetsInflation and deflation
Total questions: 14
Worksheet time: 1hrs 10mins
What is Inflation?
Inflation is a decrease in the general level of prices
Inflation is an increase in the general level of prices
Inflation is a number that that compares prices in one year with prices with some earlier base year
What causes Cost-Push inflation?
An increase in demand for goods and services
An increase in supply
A rise in production costs passed on to consumers
A fall in the price of imports
What the definition of deflation?
decrease in the average price of goods and services
occurs when the price of goods and services rise
the amount one dollar can buy is reduced
After Haiti's earthquake destroyed much of the productive capital in the nation, it also experienced massive inflation. This inflation was likely
Demand-pull
Cost-push
A person who borrows a 30 year fixed rate mortgage is likely to benefit from inflation. True or False?
True
False
During a recession, inflation is likely to be..
High
Low
Which of the following is an effect of deflation?
Decrease in unemployment
Reduction in production
Increase in production
Increased spending on goods and services
Which is NOT an effect of deflation?
Lower price for goods and services
Reduced profit and cash flow for companies
Increased spending on goods and services
Oversupply of goods and services
__________ occurs in the economy when unemployment and inflation are both high.
Hyperinflation
Disinflation
Deflation
Stagflation
The business closures and consumer anxiety caused by Covid19 is likely have what kind of effect on the economy?
inflation
deflation
