Front

What is Inflation?

Back

Inflation is an increase in the general level of prices.

Front

When inflation is high the _______________ of the dollar decreases

Back

purchasing power

Front

With inflation, AD > AS

Back

True

Front

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

Back

dollars, goods

Front

What causes Cost-Push inflation?

Back

A rise in production costs passed on to consumers

Front

What is the definition of deflation?

Back

decrease in the average price of goods and services

Front

After Haiti's earthquake destroyed much of the productive capital in the nation, it also experienced massive inflation. This inflation was likely

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Cost-push

Front

Who is most likely to be hurt by inflation? Options: someone who borrowed money, a retiree on a fixed income, The US Government

Back

a retiree on a fixed income

Front

A person who borrows a 30 year fixed rate mortgage is likely to benefit from inflation. True or False?

Back

True

Front

During a recession, inflation is likely to be..

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Low