
Understanding Inflation and Deflation

Interactive Video
•
Business
•
9th - 10th Grade
•
Hard
Jennifer Brown
FREE Resource
5 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary effect of inflation on purchasing power?
It decreases purchasing power.
It increases purchasing power.
It has no effect on purchasing power.
It stabilizes purchasing power.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which type of inflation occurs when demand exceeds supply?
Hyperinflation
Cost-push inflation
Demand-pull inflation
Built-in inflation
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What historical event is used as an example of cost-push inflation?
The French Revolution
The Industrial Revolution
World War II
The Great Depression
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a common consequence of deflation?
Increased consumer spending
Decreased real debt
Stable prices
Increased unemployment
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why do central banks aim to keep inflation between two and three percent?
To increase the value of currency
To avoid the negative effects of both inflation and deflation
To decrease interest rates
To encourage rapid economic growth
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