1. What is inflation?

2. How is inflation measured?

3. , what is demand-pull inflation?

4. , what is cost-push inflation?

5. How can excessive money in the economy cause inflation?

6. Who is especially hurt by inflation?

7. Who is hurt more by inflation, borrowers or creditors? Explain your response.

Part Two

8. List five categories of goods and services included in the CPI.

9. What kind of goods are not included in the CPI?