economics: section 11.3

demand-pull inflation

demand becomes greater than supply resulting in shortages

cost-push inflation

production cost increases, so product price increases

consumer price index (CPI)

the most used tool to measure inflation

base period 

time period that has been chosen when the prices of goods are set to 100%

1982-1984 

fill in the blank 

base period is currently ______-_______ (CPI is compared to the base period) 

stagflation

high levels of inflation combined with high unemployment

stagnancy

fill in the blank

stagflation results in _________ of production

supply-side economics 

cutting taxes to make more money available for savings, R&D, hiring new employees, etc.

SSE

implemented by Ronald Reagan

ronald reagan

fill in the blank

the SSE was implemented by _____ _______