measure inflation Flashcards
1
Q
how to measure inflation
A
cpi and rpi
2
Q
whats demand pull inflation
A
Inflation caused by demand
3
Q
whats cost push inflation
A
inflation caused by rising costs
4
Q
what are the causes of demand pull inflation
A
reduction in tax
depreciation in the exchange rate
Rising consumer confidence
Faster rates of growth in other countries = more exports = injection = inflation
5
Q
what are the causes of cost push inflation
A
External economic shocks
A depreciation in the exchange rate
Acceleration in wages
Increased worldwide demand for raw materials or components
6
Q
all cost push inflation leads to …
A
an inward shift in the SRAS curve
