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Question 1

What is consumer price index

Answer 1

a measure of the average change in prices over time in a fixed market basket of goods and services

Looks at Inflation

Question 2

What is retail price index

Answer 2

a price index calculated and published by the U.K.’s Office of National Statistics

Measure of inflation

Question 3

What is demand pull inflation

Answer 3

rising prices in an economy as a result of increased aggregate demand that surpasses supply

Question 4

What is cost push inflation

Answer 4

occurs when overall prices increase (inflation) due to increases in the cost of production

Question 5

What is quantitative easing

Answer 5

A set of unconventional monetary policies that may be implemented by a central bank to increase the money supply in an economy.

Question 6

What is monetary policy

Answer 6

Monetary policy involves using interest rates and other monetary tools to influence the levels of consumer spending and aggregate demand

Question 7

What is fiscal stimulus

Answer 7

policy measures undertaken by a government that typically reduce taxes or regulations—or increase government spending—in order to boost economic activity