Practice Price Stability (2.3) - Macroeconomics - IB 10 Individuals & Societies

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9 questions

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Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is price stability?
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Think about how prices would behave over time.
Question 2.
What is the CPI?
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Consider what the 'basket of goods' might mean.
3Question 3.
What does price stability aim to achieve?
- High inflation
- Low inflation
- Variable inflation
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Consider what stability means in economic terms.
4Question 4.
True or False: CPI is used to measure inflation.
- True
- False
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Think about the purpose of the CPI.
Question 5.
Evaluate how price instability could impact a small business's ability to plan for the future.
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Consider what happens to demand if prices are erratic.
Question 6.
Discuss the potential consequences of achieving 0% inflation for the economy.
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Think about the Incentive to spend when prices are constant.

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