1. Which of the following economic changes are consistent with cost-push inflation? Check all that apply.

a) An increase in the price level

b) Rising unemployment

c) Falling economic output

2. Which of the following are consequences of hyperinflation? Check all that apply.

a) People spend significant time and effort buying goods and services to avoid losing purchasing power.

b) People spend money as rapidly as possible.

c) Investors make productive rather than speculative investments.

d) Wages and prices spiral downward.