Inflation

Question 1

Deflation

Answer 1

A decline in the general price level in an economy

Question 2

Disinflation

Answer 2

The fall in the rate of inflation

Question 3

General price index

Answer 3

And index that measures the change in prices of goods in an economy over time

Question 4

Inflation

Answer 4

An increase in the general price level of goods and services in an economy

Question 5

Money supply

Answer 5

The total amount of money in circulation or in existence in a country

Question 6

Consumer price index (CPI)

Answer 6

A measure of the price level in an economy based on the prices of a collection of products designed to reflect the consumption basket of the average consumer

Question 7

Retail prices index (RPI)

Answer 7

The RPI measures the change in the cost of a representative sample of retail goods and services.

Question 8

Demand-pull inflation

Answer 8

The increase in aggregate demand which is an incentive for firms to increase prices

Question 9

Cost-push inflation

Answer 9

Inflation caused by business costs increasing leading to prices increasing so that they can save their profit margins.

Question 10

3 causes of inflation

Answer 10

Higher taxes
Import prices
Cuts in interest rate