Economics First C A

Persistent increase in general price level is called

• Deflation

• Price fluctuation

• Inflation

• Stagflation

Mention any two types of inflation you know_______ and ______

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 2 types of inflation are there?

• demand pull and cost push
• demand pull and supply glut
• supply glut and demand side
• supply inflation and demand inflation

Demand-Pull inflation can be describes as too many _________ chasing too few __________

• jobs, workers
• consumers, producers
• dollars, goods

_______indicates a change in the general price level in the economy.

• WPI

• CPI

• Food Basket

Mention four causes of inflation

Write down the answer to the audio

The relationship between the general price level and value of money is ______

During period of inflation, the purchasing power of money is

• Eroded

• Increased

• Multiplied

• Escalated