1. Inflation represents the following
A. A rise in the general level of prices for goods and services
B. Falling lending rates
C. An increase in purchasing power
D. A good time to buy a house
2. The Consumer Price Index is defined as
A. A statistical measure of industrial price change, compiled monthly by the Bureau of Labor Statistics, U.S. Department of Labor
b. The average inflation rate calculated based on the CPI for all items in the market basket.
C. A single average rate that accounts for the effect of varying yearly inflation rates over a period of several years.
D. None of the above
3. Name a commodity that is impacted by deflation
A. gasoline
B. milk
C. purified drinking water
D. beer