Inflation Flashcards
1
Q
Inflation
A
Persistent general tendency of prices In the economy to rise
2
Q
CPI ( consumer price index)
A
A measure that examines the weighted average of prices of a basket of consumer goods / services
3
Q
How many items are in the basket of goods
A
700
4
Q
What causes inflation
A
The cost of products and supply of a product
5
Q
Why do prices go up
A
Prices represent demand and the supply of the product
Higher demand = prices of production increases = higher prices of coustomers
6
Q
How to work it out
A
Difference / original x 100
7
Q
High inflation impacts
A
Reduce multinational investments
Make up exports in competitive
In certainy aroid. Profits
