Stack the inflation terms

Exercise and reference answers

Questions

1. Answer

   Inflation

   Question

   Most prices across an economy rising.

   Choices

   1. Inflation
   2. Deflation

2. Answer

   Hyperinflation

   Question

   The extreme form of rising prices.

   Choices

   1. Hyperinflation
   2. Deflation

3. Answer

   Basket of goods

   Question

   The list of goods used to measure prices.

   Choices

   1. Basket of goods
   2. Base year

4. Answer

   Base year

   Question

   The reference year for an index.

   Choices

   1. Base year
   2. Basket of goods

5. Answer

   CPI

   Question

   The most cited US inflation measure.

   Choices

   1. CPI
   2. PPI

6. Answer

   PPI

   Question

   Tracks input prices paid by producers.

   Choices

   1. PPI
   2. CPI

7. Answer

   Substitution bias

   Question

   A fixed basket misses buyers switching goods.

   Choices

   1. Substitution bias
   2. Base year

Instructions

Tap the right answer to add a block. Too many mistakes and the tower falls.

Explanation