Consumer price index shows how the prices have changed between different years. CPI is the most commonly used measure of inflation.
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10
On which condition do the prices rise?
Higher demand and lower supply.
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15
Why is the CPI not perfect?
Because the market basket has to be constant and a traditional CPI wonโt adjust for new products or increase in quality. Example, black&white vs 40-inch flat TV
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20
What is the inflation caused by people called? How would you define it?
Demand pull inflation - too much money chasing too few goods.
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10
What negatively influenced the export of oil from Venezuela?
Economic mis-management and political instability
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boom
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shark
Other team loses 25 points!
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fairy
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banana
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banana
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shark
Other team loses 15 points!
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gift
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lifesaver
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25
What do economists mean when they say โnominalโ?
That the price from the past has not been adjusted for inflation.
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5
Which country out of these four has the highest rate of inflation and what was the exact rate at the end of 2014? A USA; B Canada; C Venezuela; D Japan
C Venezuela; 70%
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15
What is โpurchasing powerโ?
The amount of physical goods that can be bought by a given amount of money.
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25
Try to identify inflation.
Inflation is an increase in a currency supply relative to the number of people who are using it, resulting in rising prices of goods and services over time.
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20
What are NINJA LOANS?
NINJA stands for no interest, no job, no assets == sub-prime mortgages.
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25
Who is the sugar granddaddy of all bubbles?
The Dutch tulip mania in the 1600s. Tulip gardens became a social fad among the wealthy, driving up their price. More people made money with the tulip action.
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25
What are โbubblesโ?
Surges in asset prices to level significantly above the fundamental value of that asset.
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lifesaver
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fairy
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rocket
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baam
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10
If you have 10 million dollars, are you rich?
Well, if you are on a desert island, you are not. Being rich is determined by how much purchasing power you have, not the amount of money on your bank account.