Inflation and Deflation (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What happens when inflation occurs?
What happens when inflation occurs?
General price level rises over time
How many goods and services does the CPI track monthly?
How many goods and services does the CPI track monthly?
Approximately 600
What are 'shoe leather costs' in an inflationary environment?
What are 'shoe leather costs' in an inflationary environment?
Time & resources spent researching prices
What do 'menu costs' refer to during inflation?
What do 'menu costs' refer to during inflation?
Expense of changing prices for customers
At what rate does inflation become hyperinflation?
At what rate does inflation become hyperinflation?
Exceeding 100% per annum
How does inflation affect the real value of borrowed money?
How does inflation affect the real value of borrowed money?
Reduces the real value, benefiting borrowers
What happens when UK inflation exceeds trading partners' rates?
What happens when UK inflation exceeds trading partners' rates?
UK products become more expensive abroad
What is deflation?
What is deflation?
When the general price level falls
Why might consumers delay purchases during deflation?
Why might consumers delay purchases during deflation?
Expecting to buy more cheaply in future
When can deflation be considered positive for the economy?
When can deflation be considered positive for the economy?
When caused by falling import/commodity costs