Inflation and Stagflation Answers

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Which scenario is an example of demand-pull inflation?

Consumers have more money to buy cars, and the prices of cars and car accessories rise as a result.

An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.

The demand for cars falls as consumers have less disposable income, and car prices fall as a result.

A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

Which scenario is an example of cost-push inflation?

Consumers have more money to buy cars, and the prices of cars and car parts rise as a result.

An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.

The demand for cars falls as consumers have less disposable income, and car prices fall as a result.

A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

Which federal agency calculates the Consumer Price Index (CPI)?

US Census Bureau

US Bureau of Labor Statistics

US Department of Commerce

US Department of the Treasury

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