Measuring the Rate of Inflation (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What happens to the purchasing power of money when inflation occurs?
What happens to the purchasing power of money when inflation occurs?
It decreases
If CPI was 110 last year and 115 this year, what is the inflation rate?
If CPI was 110 last year and 115 this year, what is the inflation rate?
4.5%
Which major cost is excluded from the CPI?
Which major cost is excluded from the CPI?
Mortgage interest rate changes
Which expenditure group has the highest weighting in the CPI?
Which expenditure group has the highest weighting in the CPI?
Housing
What is the main difference between headline and underlying inflation?
What is the main difference between headline and underlying inflation?
Underlying removes temporary price shocks
What percentage of items does trimmed mean inflation exclude from each end?
What percentage of items does trimmed mean inflation exclude from each end?
15%
What does the weighted median inflation rate represent?
What does the weighted median inflation rate represent?
Middle point: 50% above, 50% below
How does the RBA calculate its underlying inflation estimate?
How does the RBA calculate its underlying inflation estimate?
Averages trimmed mean & weighted median
During COVID-19, why did headline inflation drop to -0.3% while underlying stayed at 1.5%?
During COVID-19, why did headline inflation drop to -0.3% while underlying stayed at 1.5%?
Temporary childcare subsidy policy
Which statement about CPI limitations is correct?
Which statement about CPI limitations is correct?
It's based on average household spending