WorksheetsInflation
Total questions: 8
Worksheet time: 4mins
What is inflation?
How fast the economy is growing
The increase of government debt
A broad increase in prices
The price of money
What can lead to higher inflation?
The government prints too much money
When the need for a supply increases, but the amount of the supply remains the same
Higher production costs increases prices
All!
Too high inflation matters to everyone because...
It means you cannot afford to buy as much as before
It makes everyone better off
It can widen the gap between rich and poor
It can disrupt businesses over time
The opposite of inflation is deflation.
True
False
Inflation is measured by comparing the average price for a basket of goods and services over time.
True
False
We usually perceive rising prices in our personal lives as:
Lower than measured inflation
Higher than measured inflation
Close to measured inflation
Identical to measured inflation
Central banks can fight inflation by lowering interest rates.
True
False
Is inflation good or bad?
Yes
No
Depends
