Studied by 3 people
Inflation
________ is the rise in the general level of prices in an economy.
Price indices
________ can be used to translate nominal values to real values that allow us to compare the purchasing power of money over time by adjusting for inflation.
Disinflation
________ is a period of positive but falling inflation.
Deflation
________ indicates a period of declining prices of goods and services.
barter system
In a(n) ________, each good or service must be compared against all other goods or services for which it could trade.
inflation rate
The ________ between two time periods is simply the percentage change in the price index between the periods.
Demand
________ pull inflation arises from increases in aggregate demand.
Real values
Real values are values that have been adjusted for inflation.
Nominal value
Nominal value are values that have not been adjusted tor inflation.
Demand pull inflation
Demand pull inflation arises from increases in aggregate demand.
Cost push inflation
Cost push inflation arises from decreases in aggregate supply
