L4

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Last updated 2:06 PM on 9/8/26
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9 Terms

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Consumer Price Index

weighted average of the prices of goods and services purchased by the typical consumer

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Inflation

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Inflation

CPI’s Growth Rate

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Deflation

Decrease in overall price levels of an economy

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Low inflation

Gradual increases in the prices that are predictable or expected (0-9%)

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Galloping inflation

Prices are increasing rapidly but in periodic bursts (10-99%)

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Hyperinflation

Continuous increase in the prices of goods and services (100% or more)

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Demand pull inflation

aggregate demand rising faster than potential output

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Cost push inflation

inflation due to an increase in production costs