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 10
Ready to kick things off? ๐ Which of these terms describes a general increase in prices across an economy?
Deflation
Disinflation
Inflation
Stagflation