ch 26 definitions Flashcards
1
Q
aggregate demand
A
total demand in the economy including consumption, investment, government expenditure and exports minus imports
2
Q
deflation
A
period where the level of aggregate demand is falling
3
Q
inflation
A
rate at which prices rise, a general and continuing rise in prices
4
Q
consumer price index
A
measure of the general price level excluding housing costs
5
Q
retail price index
A
measure of the general price level, which includes house prices and council tax
6
Q
demand-pull inflation
A
inflation caused by too much demand in the economy
7
Q
cost-push inflation
A
inflation caused by rising business costs
8
Q
interest rates
A
price paid to lenders for borrowed money; it is the price of money
