YEAR 10 Inflation and CPI

What is the definition of inflation?

• Falling prices

• Rising general price level

• Increase in wages

• Reduction in supply

Which organisation in Australia measures inflation?

• RBA

• Treasury

• ABS

• ATO

What does CPI stand for?

• Central Price Index

• Consumer Pricing Inflation

• Consumer Price Index

• Cost Price Indicator

Which type of inflation is caused by increased consumer spending?

• Demand-pull

• Cost-push

• Supply shock

• Hyperinflation

Which type of inflation occurs when production costs increase?

• Demand-pull

• Cost-push

• Deflation

• Monetary inflation

What is the target inflation rate in Australia?

• 0–1%

• 2–3%

• 3-4%

• 5%

If CPI rises from 100 to 105, what is the inflation rate?

• 5%

• 10%

• 2%

• 15%

What caused Germany’s hyperinflation in 1923?

• Too much saving

• Printing money to pay striking workers

• High exports

• Stable wages

How often is the CPI reported in Australia?

• Monthly

• Quarterly

• Annually

• Weekly

What does a falling CPI indicate?

• Inflation

• Deflation

• Growth

• Stagflation