Chap 31 Flashcards
1
Q
Deflation
A
fall in price of goods and services
2
Q
Disinflation
A
fall in rate of inflation
3
Q
CPI
A
Measure of weighted average of the prices of a representative basket of goods and services
4
Q
Cost push inflation
A
rises in the price level caused by higher costs of production
5
Q
demand pull inflation
A
rises in the price level caused by excess demand
6
Q
wage price spiral
A
wage rises leading to higher prices, which leads to further wage rises and higher prices
7
Q
monetary inflation
A
rise in price level caused by increase in money supply
8
Q
hyperinflation
A
rapid and large rise in price level
9
Q
index linking
A
changing payments due to inflation
10
Q
menu costs
A
changing prices due to inflation (menu, price list)
11
Q
shoe-leather costs
A
costs involved in moving money around to get high interest rate
