Fill in the blanks
Producer Businesses Spending Monetary Inflation
Creditors Consumers Purchasing Devaluation Healthcare
1. CPI measures the average change over time in the prices paid by __________
for a basket of goods and services.
2. WPI tracks the changes in the prices of goods traded between _________ at the
wholesale level.
3. CPI is often used as an indicator of __________ trends and is crucial for
assessing changes in the cost of living.
4. WPI primarily reflects price changes at the __________ level before they reach
consumers.
5. CPI includes a wide range of goods and services such as food, housing,
transportation, and __________
6. Inflation can erode the __________ power of money over time, reducing the
purchasing power of consumers.
7. High levels of inflation can lead to uncertainty, which may discourage
__________ and investment.
8. Inflation can redistribute wealth and income, favoring debtors over __________.
9. Central banks may adjust _________ policy to control inflation, influencing
interest rates and money supply.
10. Rapid inflation can lead to hyperinflation, causing severe economic instability and
__________ of the currency.