Inflation and Stagflation Quiz 2023 Verified A+
Which federal agency calculates the Consumer Price Index (CPI)?
b. US Bureau of Labor Statistics
Stagflation occurs when high inflation combines with
a. high unemployment and a low level of production.
The graph shows changes in the US economy between 1971 and 2001.
According to the graph, 1971 to 1976 was a period of stagflation due to
a. rising unemployment and inflation.
Why is gasoline weighted more heavily than tomatoes in a calculation of the
annual inflation rate in the United States?
d. Americans spend more money on gasoline than tomatoes, on average.
How does demand-pull inflation differ from cost-push inflation?
a. Demand-pull inflation is driven by consumers, while cost-push inflation is driven by
producers.
Which scenario is an example of demand-pull inflation?
a. Consumers have more money to buy cars, and the prices of cars and car accessories
rise as a result.
Consumers having more money to purchase computers will most likely result in
b. an increase in prices for computers and computer accessories.
Which is an effect of stagflation?
b. The value of a country's currency drops.
Typically, low inflation is a sign of
a. a healthy economy because it results from a steady rise in demand.
Which is the best definition of inflation?
b. a gradual increase in the price of goods and services
Typically, high inflation is a sign of
c. a struggling economy because wages cannot keep up with the increase in prices.
What is one consequence of stagflation?
a.The economy drastically slows down as money loses its buying power.
Demand-pull inflation happens when the demand for goods
d. increases
What are the signs of high inflation? Check all that apply.
a. Production begins to fall.
d. Interest rates increase.
e. Purchasing power falls.
f. Fewer fixed rate bank loans.
The inflationary spiral explains the causes and effects of high inflation.
The spiral usually begins with an increase in demand. What is the direct effect of
this increase?
a. Producers raise prices to continue to make a profit.
Hyperinflation can occur when
d. the government prints a ton of money in order to pay off its debt.
Which federal agency calculates the Consumer Price Index (CPI)?
b. US Bureau of Labor Statistics
Stagflation occurs when high inflation combines with
a. high unemployment and a low level of production.
The graph shows changes in the US economy between 1971 and 2001.
According to the graph, 1971 to 1976 was a period of stagflation due to
a. rising unemployment and inflation.
Why is gasoline weighted more heavily than tomatoes in a calculation of the
annual inflation rate in the United States?
d. Americans spend more money on gasoline than tomatoes, on average.
How does demand-pull inflation differ from cost-push inflation?
a. Demand-pull inflation is driven by consumers, while cost-push inflation is driven by
producers.
Which scenario is an example of demand-pull inflation?
a. Consumers have more money to buy cars, and the prices of cars and car accessories
rise as a result.
Consumers having more money to purchase computers will most likely result in
b. an increase in prices for computers and computer accessories.
Which is an effect of stagflation?
b. The value of a country's currency drops.
Typically, low inflation is a sign of
a. a healthy economy because it results from a steady rise in demand.
Which is the best definition of inflation?
b. a gradual increase in the price of goods and services
Typically, high inflation is a sign of
c. a struggling economy because wages cannot keep up with the increase in prices.
What is one consequence of stagflation?
a.The economy drastically slows down as money loses its buying power.
Demand-pull inflation happens when the demand for goods
d. increases
What are the signs of high inflation? Check all that apply.
a. Production begins to fall.
d. Interest rates increase.
e. Purchasing power falls.
f. Fewer fixed rate bank loans.
The inflationary spiral explains the causes and effects of high inflation.
The spiral usually begins with an increase in demand. What is the direct effect of
this increase?
a. Producers raise prices to continue to make a profit.
Hyperinflation can occur when
d. the government prints a ton of money in order to pay off its debt.
