Complete the inflation rule

Exercise and reference answers

Missing parts

1. Answer

   demand-pull

   Choices

   1. cost-push
   2. demand-pull
   3. seasonal

2. Answer

   cost-push

   Choices

   1. frictional
   2. seasonal
   3. cost-push

3. Answer

   purchasing power

   Choices

   1. purchasing power
   2. gross domestic product
   3. the money supply

Complete the statement

When demand for goods and services runs ahead of supply, prices get pulled up. That is {0} inflation. When higher production costs push final prices up, that is {1} inflation. Either way, rising prices cut {2}, the value of what money can buy.

Instructions

Tap the right word for each blank.

Explanation