5.1 - Introduction
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Practice Questions
Test your understanding with targeted questions
What is inflation?
💡 Hint: Think about money's value decreasing.
How does inflation affect purchasing power?
💡 Hint: Consider how prices change over time.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is inflation?
💡 Hint: Focus on price rises over time.
True or False: Inflation increases purchasing power.
💡 Hint: Reflect on what inflation does to money's value.
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Challenge Problems
Push your limits with advanced challenges
If a particular good's price increases from $100 to $120, what is the rate of inflation for that good?
💡 Hint: Use the formula for rate of inflation.
Consider a scenario where inflation rates exceed wage growth for several years. Discuss the long-term implications this could have for consumer behavior.
💡 Hint: Think about how people react to higher prices.
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Reference links
Supplementary resources to enhance your learning experience.