Inflation

Question 1

Inflation

Answer 1

is the sustained increase in the general price level of a basket of goods from one period of time to the next

Question 2

Deflation

Answer 2

is a below zero decline in the general price level of a basket of goods of services from one period of time to the next

Question 3

Disinflation

Answer 3

is where there is a decrease in the general price level of a basket of goods from one period of time to the next, however this percentage remains above the zero level.

Question 4

CASE STUDY: Fill in

Sri Lanka is grappling with high ________ (25.5%) with an unofficial rate potentially above 50% leading to the ______ ____ raising interest rates up to 15.5% in May 2023

Answer 4

inflation, central bank

Question 5

CASE STUDY: Fill in

Sri Lankan government ______ fertilisers use in farms, since fertilisers are imported this saved the government $___million of their foreign reserves.

Consequence: production of their staple food ____ fell by ___ leading to price rises of 93% for rice and subsequently forced Sri Lanka in 2021 to import rice.

Answer 5

banned, 400, rice , 50%,