Title: QUIZ: Inflation -- Economic Lowdown Audio Series
Course: Andria Testing FRE2 > Section: Inflation -- Economic Lowdown Audio Series

Q: What is inflation?
- A sustained increase in the average price level of goods and services
- An increase in the prices of important goods and services that people need on a regular basis
- A sustained increase in average wages
- A sustained decrease in the amount of goods and services available
A: A sustained increase in the average price level of goods and services

Q: Which bureau collects data each month from various establishments on prices of goods and services?
- Bureau of Financial Management
- Bureau of Statistics
- Bureau of Labor Statistics
- The Federal Reserve
A: Bureau of Labor Statistics

Q: What is the most common measure of inflation?
- Gross Domestic Products (GDP)
- Inflation Index (II)
- Consumer Price Index (CPI)
- Gross Domestic Product Per Capita
A: Consumer Price Index (CPI)

Q: Which of the following people would be hurt least by high inflation?
- People who save their money
- People who live on fixed incomes
- People whose income has increased at a slower rate than inflation
- People whose income has increased faster than the rate of inflation
A: People whose income has increased faster than the rate of inflation

Q: At its root, what causes inflation?
- Too little money chasing too many goods
- Too much money chasing too few goods
A: Too much money chasing too few goods

Q: Which of the following best describes disinflation?
- The inflation rate decreases from 3% to 2%.
- The inflation rate increases (slightly) from 3% to 4%.
- The inflation rate is negative, such as -2%.
- The purchasing power of money increases.
A: The inflation rate decreases from 3% to 2%.

Q: What is deflation?
- A negative inflation rate
- An inflation rate just above zero
- A decrease in the inflation rate
- Anytime the inflation rate shifts
A: A negative inflation rate

Q: What is the Federal Reserve’s goal for the inflation rate?
- 0%
- 1%
- 2%
- 4%
A: 2%