Question 1
In the CPI market basket, the category which has the largest weight is
◦ housing.
◦ food and beverages.
◦ transportation.
◦ medical care.
Question 2
Sustained inflation is
◦ the same as hyperinflation.
◦ also called stagflation.
◦ a constant increase in the price of one product or service in the economy.
◦ an increase in the overall price level that continues over a significant period of time.