0
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What is the consumer price index used for?
It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.
When inflation occurs do prices fall or rise?
rise
What is a major problem for businesses during a period of chronic inflation?
It is a simple reason. Chronic inflation causes price rise across the board, all commodities affected. From the housewife buying vegetables to the jewelers, businessmen and everyone else using fuel. What also happens during chronic inflation situations is the government raises the interest rates. So while prices of all goods have gotten expensive so had the cost of borrowing. A difficult time for everyone. Btw the way, the government raises interest rates to curb the cash flow fueling the high prices. So if the cash flow decreased then prices will fall.
Why do Governments and economists worry about inflation?
Inflation is a general and sustained rise in the level of prices over two financial quarters in an economy. The government is worried about inflation because it has negative repercussions on its ability to achieve its macro- economic objectives. For example, inflation could result in higher unemployment. Firms seek to cut costs during a period of inflation and could lay off workers.
Which of these terms means a general increase in prices and a fall in the purchasing value of money?
inflation
During a period of deflation the graph of the consumer price index CPI will fall?
false
What is the consumer prices for the US?
It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.
What is the consumer price index used for?
It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.
Why does graph fall on the first quadrant?
It does not necessarily fall.
Does fall in inflation means fall in price too?
No. A fall in the rate of inflation does not mean prices fall. It simply means they go up a little slower. Your money becomes worthless at a little slower speed.
Would you fall pregnant during your period?
No, you wouldn't fall pregnant during your period as there is no egg present during menstruation. However it is possible for you to be fertile during menstruation, this would mean that sperm from sex during menstruation may live long enough to fertilise the egg released during ovulation.
When inflation occurs do prices fall or rise?
rise
Can inflation and employment happen at the same time?
A rise in unemployment will lead to a fall in inflation...this is best explained by the philips curve
What graph in which the data points don't fall along with a straight line?
A non-linear graph.
A line graph in which the data points do not fall along a straight line is called a?
nonlinear graph.
A line graph in which the data points do not fall along a straight line is called?
nonlinear graph
What is a graph where the data points do not fall along a straight line is called?
There is no specific name. It could be a non-linear graph, or a scatter graph.
