1. Name:________________
Inflation
1. CPI stands for:
2. Formula
Theories for
Quantity Theory
Short Definition
Example
Cost Push
Demand Pull
3. What is the danger of the US government printing up $1 trillion new dollars into the economy?
4. Calculate the inflation rate in 2010 for Brazil (in Brazilian Reals)
2010: Housing 100
Food 20
Medical Care 70
Transportation 20
Energy 30
Apparel 10
2011: Housing 102
Food 24
Medical Care 72
Transportation 32
Energy 32
Apparel 11
5. Is this a good or bad inflation rate?
6. What would you suggest the Brazilian government do about this situation?

2. Name:________________
7. Calculate the inflation rate in 2011 for Egypt (in Egyptian Pounds).
2010: Housing 50
Food 2
Medical Care 15
Transportation 5
Energy 3
Apparel 5
2011: Housing 48
Food 6
Medical Care 17
Transportation 6
Energy 4
Apparel 5
8. Calculate the inflation rate in 2011 for Mozambique (in metical millions,)
2010: Housing 1
Food 2
Medical Care 10
Transportation 3
Energy 5
Apparel 1
2011: Housing 2
Food 4
Medical Care 20
Transportation 6
Energy 10
Apparel 2
9. Is this a good inflation rate for Mozambique?
10. Calculate the inflation rate in 2011 for Spain (in Euros,)
2010: Housing 500
Food 35
Medical Care 30
Transportation 50
Energy 25
Apparel 20
2011: Housing 480 Transportation 45
Food 50
Energy 20
Medical Care 45
Apparel 20
11. Is this a good inflation rate for Spain?
12. If you had to choose to live in Spain, Egypt, Brazil or Mozambique and you were personally employed,
where would you live? Explain why.
13. Which 3 decades did the US face the
worst inflation over the last century?
14. Has inflation been a problem in the US
during your life time? LOOK AT THE GRAPH!