A money search that spikes whenever prices jump. This page has 100 important questions and answers. Original explainer for daily search — not a government login or live tracker.
Inflation is a general rise in prices over time — your money buys less of the same basket of goods. Central banks watch a consumer price index (CPI). A little inflation is normal in growing economies; very high inflation hurts savers and anyone on a fixed income.
Inflation is not the same as one shop’s sale ending. It is not GDP. And a pay rise that lags inflation is a real-terms cut.
100 important questions. Quick 10 is a random set; Full set plays every question.
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100 questions and answers
Each item is a 4-option MCQ. Open a question, tap A–D. Green is correct, red is wrong. Original explainers — not copied match reports.
1. Hyperinflation is
Tap A, B, C or D.
Answer: C) extremely fast price rises that break daily life
People may switch to a more stable currency.
2. A central bank may raise interest rates to
Tap A, B, C or D.
Answer: D) cool spending and try to slow inflation
Higher rates also affect mortgages and loans.
3. Deflation is
Tap A, B, C or D.
Answer: A) a general fall in prices
It can delay spending and raise real debt.
4. Core inflation often excludes
Tap A, B, C or D.
Answer: B) volatile food and energy prices
It helps see the underlying trend.
5. Inflation is not
Tap A, B, C or D.
Answer: D) the same as your personal grocery bill only
Your basket can differ from the official one.
6. Demand-pull inflation happens when
Tap A, B, C or D.
Answer: B) too much spending chases too few goods
Booms and stimulus can feed it.
7. Cost-push inflation happens when
Tap A, B, C or D.
Answer: D) higher input costs are passed to buyers
Energy and import shocks are classic.
8. A CPI basket is
Tap A, B, C or D.
Answer: C) a fixed mix of goods and services used to track prices
Weights try to match typical spending.
9. The producer price index (PPI) tracks
Tap A, B, C or D.
Answer: A) prices at the factory or wholesale stage
PPI moves can later show up in CPI.
10. Stagflation is
Tap A, B, C or D.
Answer: B) weak growth plus high inflation together
It is hard for policy because the usual tools clash.
11. The real interest rate is roughly
Tap A, B, C or D.
Answer: D) the nominal rate minus inflation
If inflation exceeds the rate, cash loses power.
12. A wage-price spiral is
Tap A, B, C or D.
Answer: A) pay and prices chasing each other upward
Expectations can keep it going.
13. Menu costs are
Tap A, B, C or D.
Answer: A) the real cost of reprinting or resetting prices
In high inflation, firms change prices often.
14. Shoe-leather costs refer to
Tap A, B, C or D.
Answer: D) the hassle of holding less cash when prices race
People run to the bank more often.
15. Indexation means
Tap A, B, C or D.
Answer: A) a payment is adjusted by an inflation measure
Pensions and some wages use it.
16. Disinflation is
Tap A, B, C or D.
Answer: D) inflation slowing, not prices necessarily falling
5% to 3% is still rising prices, just slower.
17. Headline inflation usually includes
Tap A, B, C or D.
Answer: A) food and energy as well as other items
Those two items can swing the number.
18. Imported inflation rises when
Tap A, B, C or D.
Answer: D) foreign goods or a weaker currency lift local prices
Oil is a common channel.
19. Purchasing power is
Tap A, B, C or D.
Answer: C) how large a basket your money still buys
Inflation eats it if pay lags.
20. Many inflation-targeting central banks aim near
Tap A, B, C or D.
Answer: A) a low positive rate such as about 2%
The exact target is a policy choice.
21. Hyperinflation historically features
Tap A, B, C or D.
Answer: B) prices jumping so fast that money is dumped
People may switch to barter or a foreign currency.
22. A one-off VAT rise
Tap A, B, C or D.
Answer: D) can lift the CPI for a while without being a new trend
Look at the rate after the step.
23. Inflation expectations matter because
Tap A, B, C or D.
Answer: B) firms and workers set prices and wages ahead
If people expect 8%, they bargain for 8%.
24. Real wages fall when
Tap A, B, C or D.
Answer: C) prices rise faster than pay
A 3% raise in 6% inflation is a cut.
25. Savers in cash lose when
Tap A, B, C or D.
Answer: B) inflation exceeds the interest they earn after tax
Look at the real return.
26. Borrowers with fixed-rate debt can gain if
Tap A, B, C or D.
Answer: C) inflation jumps and their rate does not
The real burden of the loan shrinks.
27. Quantity-theory intuition is that
Tap A, B, C or D.
Answer: D) too much money chasing output can lift prices
It is a long-run sketch, not a daily rule.
28. A price index is not
Tap A, B, C or D.
Answer: D) your personal shopping receipt
Your basket can differ from the official one.
29. Housing in CPI may use
Tap A, B, C or D.
Answer: D) rents and/or a rental-equivalent, depending on the country
Methods differ; read the notes.
30. Core inflation is watched because
Tap A, B, C or D.
Answer: C) it tries to show the underlying trend
Food and energy are often stripped out.
31. A supply shock (failed harvest, blocked canal)
Tap A, B, C or D.
Answer: A) can lift prices even if demand is weak
Central banks debate whether to look through it.
32. Deflation can hurt debtors because
Tap A, B, C or D.
Answer: C) they repay in money that buys more than when they borrowed
Real debt burdens grow.
33. Relative price changes are not
Tap A, B, C or D.
Answer: A) the same as inflation if the whole basket is flat
Oil up and phones down can net near zero.
34. An inflation measure is usually
Tap A, B, C or D.
Answer: C) a percent change over a year or a month
Year-on-year is the headline people quote.
35. Administered prices (fuel caps, rail fares)
Tap A, B, C or D.
Answer: C) can hide or delay inflation until the cap moves
Policy choices show up in the basket.
36. A weaker currency tends to
Tap A, B, C or D.
Answer: A) make imports dearer in local money
Pass-through is not always one-for-one.
37. Indexed tax brackets exist to
Tap A, B, C or D.
Answer: A) stop inflation pushing people into higher rates by accident
Without them, freeze is a stealth tax.
38. The GDP deflator differs from CPI because
Tap A, B, C or D.
Answer: B) it covers domestic output prices, not only a consumer basket
Exports sit in the deflator; imported consumer goods sit more in CPI.
39. Food-price spikes hit hardest when
Tap A, B, C or D.
Answer: A) food is a large share of household spending
Poorer households often feel it first.
40. A central bank raising rates is trying to
Tap A, B, C or D.
Answer: D) cool demand so price rises ease
Loans and mortgages usually get dearer too.
41. Inflation is a general rise, so one concert ticket
Tap A, B, C or D.
Answer: C) is not proof the CPI jumped
Look at a broad basket.
42. Real interest negative means
Tap A, B, C or D.
Answer: B) inflation is running faster than the nominal rate
Cash under the mattress does worse.
43. Businesses facing unstable inflation find
Tap A, B, C or D.
Answer: B) planning and contracts get harder
Long quotes become risky.
44. A stats office may revise CPI if
Tap A, B, C or D.
Answer: D) weights or methods are updated, or an error is found
First prints are estimates.
45. Cost-of-living and CPI are related but
Tap A, B, C or D.
Answer: A) your household mix can differ from the average basket
Regional prices also differ.
46. Unanchored expectations means
Tap A, B, C or D.
Answer: B) people stop believing inflation will return to target
Then wage bargains stay high.
47. Inflation is not the same as
Tap A, B, C or D.
Answer: C) a rise in one asset price such as a single stock
Asset bubbles can happen with low CPI.
48. The official source for “what is inflation” (learn desk, item 1) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
49. The official source for “what is inflation” (learn desk, item 2) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
50. The official source for “what is inflation” (learn desk, item 3) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
51. The official source for “what is inflation” (learn desk, item 4) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
52. The official source for “what is inflation” (learn desk, item 5) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
53. The official source for “what is inflation” (learn desk, item 6) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
54. The official source for “what is inflation” (learn desk, item 7) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
55. The official source for “what is inflation” (learn desk, item 8) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
56. The official source for “what is inflation” (learn desk, item 9) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
57. The official source for “what is inflation” (learn desk, item 10) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
58. The official source for “what is inflation” (learn desk, item 11) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
59. The official source for “what is inflation” (learn desk, item 12) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
60. The official source for “what is inflation” (learn desk, item 13) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
61. The official source for “what is inflation” (learn desk, item 14) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
62. The official source for “what is inflation” (learn desk, item 15) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
63. The official source for “what is inflation” (learn desk, item 16) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
64. The official source for “what is inflation” (learn desk, item 17) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
65. The official source for “what is inflation” (learn desk, item 18) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
66. The official source for “what is inflation” (learn desk, item 19) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
67. The official source for “what is inflation” (learn desk, item 20) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
68. The official source for “what is inflation” (learn desk, item 21) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
69. The official source for “what is inflation” (learn desk, item 22) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
70. The official source for “what is inflation” (learn desk, item 23) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
71. The official source for “what is inflation” (learn desk, item 24) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
72. The official source for “what is inflation” (learn desk, item 25) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
73. The official source for “what is inflation” (learn desk, item 26) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
74. The official source for “what is inflation” (learn desk, item 27) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
75. The official source for “what is inflation” (learn desk, item 28) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
76. The official source for “what is inflation” (learn desk, item 29) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
77. The official source for “what is inflation” (learn desk, item 30) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
78. The official source for “what is inflation” (learn desk, item 31) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
79. The official source for “what is inflation” (learn desk, item 32) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
80. The official source for “what is inflation” (learn desk, item 33) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
81. The official source for “what is inflation” (learn desk, item 34) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
82. The official source for “what is inflation” (learn desk, item 35) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
83. The official source for “what is inflation” (learn desk, item 36) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
84. The official source for “what is inflation” (learn desk, item 37) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
85. The official source for “what is inflation” (learn desk, item 38) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
86. The official source for “what is inflation” (learn desk, item 39) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
87. The official source for “what is inflation” (learn desk, item 40) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
88. The official source for “what is inflation” (learn desk, item 41) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
89. The official source for “what is inflation” (learn desk, item 42) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
90. The official source for “what is inflation” (learn desk, item 43) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
91. The official source for “what is inflation” (learn desk, item 44) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
92. The official source for “what is inflation” (learn desk, item 45) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
93. The official source for “what is inflation” (learn desk, item 46) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
94. The official source for “what is inflation” (learn desk, item 47) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
95. The official source for “what is inflation” (learn desk, item 48) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
96. The official source for “what is inflation” (learn desk, item 49) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
97. The official source for “what is inflation” (learn desk, item 50) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
98. Inflation means
Tap A, B, C or D.
Answer: B) prices on average are rising
One expensive holiday is not the CPI.
99. CPI is
Tap A, B, C or D.
Answer: D) a consumer price index used to track inflation
National stats offices publish it.
100. If inflation is 5% and your raise is 2%, your real pay
