3.4 price stability Flashcards
1
Q
price stability
A
when price levels stay constant over time
2
Q
general price level
A
the measure of price of goods and services at a particular time
3
Q
inflation
A
general rise in prices over a period of time
4
Q
cost of living
A
the price level of goods and services which the average family buys
5
Q
rate of inflation
A
the percentage rise of prices over a period of time
6
Q
demand pull inflation
A
when increased demand in the economy pulls up the price of goods
7
Q
cost push inflation
A
when the cost of production increases and so is passed on to the consumers
8
Q
nominal
A
monetary value of something
9
Q
real value
A
when inflation has been taken into account of the price
10
Q
CPI (consumer price index)
A
method used to calculate rate of inflation
((new cpi - old cpi) / old cpi) x 100
