Module 42 Review and Assessment
Summing Up the Key Ideas: Match the following terms to the cor...
Engineering, 16.02.2020 08:32, nails4life324
Module 42 Review and Assessment
Summing Up the Key Ideas: Match the following terms to the correc
A. Inflation
D. Consumer price index G. Producer price
B. Inflation rate
I. Shoe leather costs
E. Market basket
index
J. Menu costs
C. Deflation F. Base period
H. Hyperinflation
1. A decrease in the price level.
2. A measure of the overall price level faced by a typical consumer.
3. The costs of updating prices due to inflation.
4. A bundle of goods that an average consumer might buy.
5. The annual percentage increase in the price level.
6. A period of very rapid inflation
7. A rise in the price level.
8. A period in the past used as a benchmark for comparisons.
9. A measure of the cost of a basket of goods and services bought by producers.
10. The costs of time and effort involved in frequent trips to the bank or ATM to avoid
holding much cash during periods of high inflation.
Analyze and Explain: Determine if the person described in each of the following situations
would be helped by inflation or hurt by inflation and then explain your answer.
HELPED OR HURT?
EXPLANATION
1. a retired worker with a fixed pension
during a time of inflation
2. a lending bank that expocted the
inflation rate to be 7 percent when the
actual rate of indiation for the duration
of the lon turned oun to be 4 percent
I need that
Answers: 1
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