Crash Course Economics Inflation and Bubbles

What is purchasing power?

• inflation

• The ability to buy goods and services

• Companies Revenue

• Pay raise

What is a bubble in terms of a market?

• Real Estate markets

• Price of a good or service soaring

• Price decrease of a good

• New Markets

What does CPI stand for

• Computer process of intelligence   

• Consumer Product Information

• Consumer Price Index

• Communist Price Index

Why do we have to make a CPI adjustment?

• To keep consumers happy

• I don't know because I didn't listen 

• So old products can be continued to be used draging prices down and balancing out the CPI

• So that new products have a chance at getting into the market pool, also as a base to compare past and present  

Tags

CCSS.RI.11-12.8

CCSS.RI.9-10.7

CCSS.RL.11-12.8

CCSS.RL.8.7

CCSS.RL.9-10.7

According to the video what phenomenon has occurred at times in Japan over the last 25 years? 

• hyperinflation

• Deflation

• Inflation

• stagflation

What is an explanation for demand-pull inflation?

• certris paribus 

• there is no such thing as a free lunch

• too much money chasing too few goods

• increase in cost of production

How would too much money and too little goods be bad for an economy?

• There wouldn't be enough product for people to buy and inflation increase

• Goods are too cheap and consumers get greedy

• CPI would fall

• market bubbles can burst

What is the basic explanation for chocolate price increases?

• greater demand and lower supply

• Consumer Price Index

• Big business cornering the chocolate market

• Greater demand and greater supply

What causes bubbles to burst?

• bad ideas

• too high of inflation

• running out of buyers

• CPI