Show:
history
causes
prevention
effects
100
what is cpi
consumer price index
100
what happens when we come close to running out of gas?
gas prices increase.
100
what can the central bank do if the inflation rate rises
increase interest rates
100
what is inflation?
rising prices of essential goods or declining value of money.
200
what is the gdp deflator
is a measure of the level of prices of all new, domestically produced, final goods and services in an economy.
200
what is the definition of market power?
the ability to avoid competitive pressures.
200
lower wage growth helps to reduce__________ and helps to average________
cost push inflation, demand pull inflation
200
what are two of the five effects of inflation?
falling incomes, income redistribution, cost of borrowing, business competitiveness, negative interest rates.
300
what is the highest basket in the cpi
shelter
300
if there is a fire that ruins potato crops, what will happen to the supply, and price?
supply decreases, and potato prices increases.
300
what were three of the five policies mentioned to contoll inflation.
monitary, fiscal, supply side, wage control, monitarisim.
300
who is effected negatively from inflation?
poor and middle class, and wage earners.
400
what is the lowest basket in the cpi
alcohol and tobacco
400
what happens to the demand of wood when the number of fireplaces increase.
demand of wood increases.
400
what is the policy that is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nations econemy
fiscal policy
500
what percent does food account for in the cpi
16.1%
500
is there any product that is not effected by inflation?
yes, example video games.
500
what are two disadvantages of supply side policies?
it takes a long time and cannot deal with inflation caused by rising demand.