inflation and deflation

Question 1

inflation

Answer 1

a situation where there is a sustained increase in the general price level of an economy

Question 2

stagflation

Answer 2

a situation of high unemployment and rapid inflation with negligible growth in national output or even contraction of the national output

Question 3

deflation

Answer 3

a sustained decrease in the GPL of an economy

Question 4

disinflation

Answer 4

a period where the inflation rate is still positive but declining over time

Question 5

GPL

Answer 5

the average price of all goods and services in the economy during a period of time

Question 6

consumer price index

Answer 6

measures the changes in the price of a fixed basket of goods and services purchased by the average household over time, with respect to a selected base year

Question 7

real value of money

Answer 7

the real value of a unit of money is its purchasing power or the quantity of goods and services that it can buy