3. Economic Indicators and the Business Cycle

Price Indices And Inflation — Quiz

Test your understanding of price indices and inflation with 5 practice questions.

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Practice Questions

Question 1

What is a price index used for in economics?

Question 2

Which statement best describes inflation?

Question 3

If a price index rises from $100$ to $105$ in one year, what is the inflation rate?

Question 4

What does a consumer price index, or $CPI$, measure?

Question 5

Why might economists worry about inflation?