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Consumer Price Index and Inflation Vocabulary Matching

Practice the vocabulary from the lesson

Definitions:

  1. A value that has been adjusted for inflation.
  2. A value that is current and not adjusted for inflation.
  3. Inflation that occurs when there is more spending in an economy than the economy has in goods and services.
  4. A type of inflation caused by an increase in the cost of inputs for businesses.
  5. A unique period of high unemployment and high inflation while the economy remains stagnant or without economic growth.
  6. Cost of living adjustment for increases in inflation.
  7. The basket of consumer goods used by the Bureau of Labor Statistics to calculate CPI.
  8. Used to measure inflation. The formula is (price in a specific year / price in the base year x 100.
  9. Inflation rates that meet the public's expectations.
  10. An inflation rate that is higher than anyone expected.
  11. The agency within the Department of Labor tasked with calculating CPI.
  12. The year in which the CPI is 100. Currently the BLS uses the years 1982-1984.
  13. The formula is (New Figure – Old Figure / Old Figure) x 100.
  14. Usually a period of a rise in the general level of prices associated with a growing economy.
  15. Usually a period of a decline in the general level of prices associated with a shrinking economy.
  16. Inflation occurring at a very high rate.

Terms:

  • Base Year
  • Real Value
  • Percentage or Rate Change
  • Expected Inflation
  • COLA
  • Nominal Value
  • Hyperinflation
  • Unexpected Inflation
  • Consumer Price Index (CPI)
  • Demand-Pull Inflation
  • Deflation
  • Bureau of Labor Statistics
  • Market Basket
  • Cost Push Inflation
  • Inflation
  • Stagflation

Answers:

  1. A value that has been adjusted for inflation.

    Answer: Real Value

  2. A value that is current and not adjusted for inflation.

    Answer: Nominal Value

  3. Inflation that occurs when there is more spending in an economy than the economy has in goods and services.

    Answer: Demand-Pull Inflation

  4. Cost Push Inflation

    Answer: A type of inflation caused by an increase in the cost of inputs for businesses.

  5. A unique period of high unemployment and high inflation while the economy remains stagnant or without economic growth.

    Answer: Stagflation

  6. Cost of living adjustment for increases in inflation.

    Answer: COLA

  7. The basket of consumer goods used by the Bureau of Labor Statistics to calculate CPI.

    Answer: Market Basket

  8. Used to measure inflation. The formula is (price in a specific year / price in the base year) x 100.

    Answer: Consumer Price Index (CPI)

  9. Inflation rates that meet the public's expectations.

    Answer: Expected Inflation

  10. An inflation rate that is higher than anyone expected.

    Answer: Unexpected Inflation

  11. The agency within the Department of Labor tasked with calculating CPI.

    Answer: Bureau of Labor Statistics

  12. The year in which the CPI is 100. Currently the BLS uses the years 1982-1984.

    Answer: Base Year

  13. The formula is (New Figure – Old Figure / Old Figure) x 100.

    Answer: Percentage or Rate Change

  14. Usually a period of a rise in the general level of prices associated with a growing economy.

    Answer: Inflation

  15. Usually a period of a decline in the general level of prices associated with a shrinking economy.

    Answer: Deflation

  16. Inflation occurring at a very high rate.

    Answer: Hyperinflation