1. 1 2 3 4 5 6 7 8 9

2. 1
Define inflation

3. 2
State two possible economic effects of rising price inflation on the Irish economy

4. What economic uses are made of a Consumer Price Index?3
What economic uses are made of a Consumer Price Index?
(Outline two)

5. What does the CPI measure?4
What does the CPI measure?

6. How can inflation be reduced?5
How can inflation be reduced?

7. Give two reasons for your answer6
How accurate is the CPI?
Give two reasons for your answer

8. Define “cost-push” inflation, how might it be caused.7
Define “cost-push” inflation, how might it be caused.

9. Define deflation. Outline one reason why it might be caused.8
Define deflation. Outline one reason why it might be caused.

10. 9
In composite price index each good is assigned a “weight”. What does the weight reflect?