9 min read
This study guide covers inflation, deflation, disinflation, and how to measure them using price indices like the Consumer Price Index (CPI). It explains how to calculate CPI and the inflation rate, discusses biases like substitution bias, and connects these concepts to real-world economic impacts. It also includes practice multiple-choice and free-response questions with answers.
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Question 1 of 11
What does inflation refer to in economics? 🤔
A general decrease in prices
A general increase in prices
A slowing down in the rate of price increases
The price of a single good going up