1.

Inflation refers to a _______________ and ______________ increase in the

___________ level.
2. Deflation involves a continuous _____________ in the general level of
____________ in an economy.
3. Stagflation is an economic situation when ____________________ and
_________________ are both high and/or rising.
4. _______________________________________is caused by rising of production
cost.
_______________________________________is caused by
________________rising faster than the aggregate supply of goods.
5. Inflation can be measured using _________________ and RPI.
6. CPI is :
the ___________________ price index
Calculated based on _____________________ of household
A selection of ____________________________ normally purchased will be
identified
Base year given a value of ____________.
7. High or rising inflation can be bad for an economy:
_________________ the value or ______________________power of money.
_______________ the cost of production and ________________ profit margins.
Reduces the price ____________________ of exports.
Create economic _______________________________.

8. High inflation might not cause a lower unemployment because:

Inflation led to export not as __________________.
The real value of money ______________ when inflation level elevated. The lower
the ___________________________ and firm may not produce as much.
Cyclical _____________________ may increase
Higher inflation causes ________________ and ________________ investment.