Inflation

Question 1

Inflation usually lags by

Answer 1

A year

Question 2

CPI measures inflation, what does it stand for

Answer 2

Consumer price index

Question 3

PPI measures inflation, what does it stand for?

Answer 3

Producer price index

Question 4

Which helps forecast the other PPI or CPI?

Answer 4

PPI

Question 5

What are the sources of inflation?

Answer 5

Cost-push and demand-pull

Question 6

Cost-push

Answer 6

Rising costs because of higher wages, so firms increase prices

Question 7

Demand-pull

Answer 7

Increase in demand raises prices; as businesses deal with workers wanting higher wages to deal with the cost of living