Economics Quiz 14

Question 1

Who are the losers of inflation?

Answer 1

Those on fixed incomes
Creditors
Savers
Consumers

Question 2

employers do take inflation into account when designing up pension plans

Answer 2

COLA (Cost-of-Living-Adjustments)

Question 3

compares the prices of all goods and services from year to year

Answer 3

GDP Deflator

Question 4

measures the changes in the prices that affect a selected group of goods and services

Answer 4

Consumer Price Index (CPI)

Question 5

CPI can be used for several things

Answer 5

Inflation Calculation
To Determine One’s Purchasing Power
To Adjust Wages, Prices, and Interest Rate

Question 6

What is the best cure for inflation?

Answer 6

Limitation of money creation

Question 7

What are the three causes of inflation?

Answer 7

Cost-Push Inflation
Demand-Pull Inflation
Money Growth

Question 8

Who are the winners of inflation?

Answer 8

Employers who are supplying pensions
Borrowers
Financial Institutions

Question 9

a sustained rise in the average price level

Answer 9

Inflation