2.1 Growth, Unemployment, Inflation

Question 1

Inflation

Answer 1

persistent increase in the average price level in the economy, measured by CPI

Question 2

Disinflation

Answer 2

average price level still increases, but at a decreasing rate

Question 3

CPI

Answer 3

the average prices of goods and services that the** typical consumer** buys; used to calculate inflation.

Question 4

demand-pull inflation

Answer 4

inflation caused by increase in AD

Question 5

cost-push inflation

Answer 5

inflation caused by increased COP