Inflation

Question 1

What is inflation

Answer 1

Inflation is a increase in the general price of goods and services in an economy

Question 2

What is the ideal inflation rate

Answer 2

2-3%

Question 3

What are two reasons that cause inflation

Answer 3

Demand pull inflation
Cost push inflation

Question 4

What is demand pull inflation

Answer 4

Is the increase price of goods and services due to the increase in spending

Question 5

What is cost push inflation (supply)

Answer 5

Is the rise of prices in goods due to the increase in the cost of production. Companies increase the price of the product because of this

Question 6

What is Australia’s current inflation rate

Answer 6

7%

Question 7

Community bargains and unique pieces draw people into charity shops, is this demand pull or cost push

Answer 7

Demand pull

Question 8

Boating industry goes gangbusters as cashed up retirees stay in Australia (rich old people buying lots of boats), is this demand pull or cost push

Answer 8

Demand pull

Question 9

Spending, jobs, foot traffic on the rise as data shows Brisbane economy bouncing back from pandemic, is this demand pull or cost push

Answer 9

Demand pull

Question 10

Textile units to see 25% spike in production cost due to covid compliance, is this demand pull or cost push

Answer 10

Cost push

Question 11

Minimum wage hikes hit 21 states in 2019 and more are on the way in 2020, is this demand pull or cost push

Answer 11

Cost push

Question 12

What is hyperinflation

Answer 12

Refers to very high and out of control inflation levels

Question 13

What is deflation

Answer 13

Deflation is the decrease in the general levels of prices in the economy