Podcast
Questions and Answers
What does inflation refer to?
What does inflation refer to?
- General increase in the price level of goods and services (correct)
- Decrease in the price level of goods and services
- Fluctuation of the price level of goods and services
- Stagnation of the price level of goods and services
What can contribute to inflation?
What can contribute to inflation?
- Decline in money circulation
- Balance between supply and demand for money (correct)
- Decrease in consumer spending
- Reduced production costs
How is inflation typically expressed?
How is inflation typically expressed?
- Absolute value
- Percentage representing the annual rate at which prices are rising (correct)
- Ratio of demand to supply
- Average price index
How can government spending contribute to demand-pull inflation?
How can government spending contribute to demand-pull inflation?
What is one factor that can lead to demand-pull inflation?
What is one factor that can lead to demand-pull inflation?
What effect can higher levels of business investment have on inflation?
What effect can higher levels of business investment have on inflation?
What is the main effect of loose monetary policies on borrowing and spending?
What is the main effect of loose monetary policies on borrowing and spending?
What is the primary cause of cost-push inflation?
What is the primary cause of cost-push inflation?
Which index measures the average change in prices paid by consumers for goods and services over time?
Which index measures the average change in prices paid by consumers for goods and services over time?
What is another name for built-in inflation?
What is another name for built-in inflation?
Which factor can directly impact production costs?
Which factor can directly impact production costs?
What can disrupt the supply chain, causing shortages and increased costs?
What can disrupt the supply chain, causing shortages and increased costs?
What is the measure that evaluates the average change over time in the selling prices received by domestic producers for their output?
What is the measure that evaluates the average change over time in the selling prices received by domestic producers for their output?
What is the main factor leading to built-in inflation?
What is the main factor leading to built-in inflation?
What is the primary cause of moderate inflation in an economy?
What is the primary cause of moderate inflation in an economy?
What leads to a continuous and self-sustaining increase in prices in an economy?
What leads to a continuous and self-sustaining increase in prices in an economy?
Flashcards are hidden until you start studying
