inflation in the u.s

Question 1

inflation

Answer 1

when the buying power of money decreases and market prices go up

Question 2

deflation

Answer 2

when prices fall and the value of money increases

Question 3

consumer price index

Answer 3

measuring tool for the price change in a selected group of consumer goods and services

Question 4

market basket

Answer 4

goods and services that relate to eachother

Question 5

cost-push inflation

Answer 5

prices are “pushed up” because of the cost of resources and labor

Question 6

demand-pull inflation

Answer 6

when prices are pulled up because demand for a product is greater than supply
- occurs when the government (the feds) prints too much money
- “Too much money chasing too few goods”

Question 7

built-in inflation

Answer 7

the gradual and natural raise of prices met with a gradual raise in wages
- employees demand higher wages to adjust to the cost of living, businesses will then raise prices as a result of increased income