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4 Cards in this Set
- Front
- Back
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Inflation |
Inflation is the sustained increase in the price level over a period of time resulting in a fall in the value of money |
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Deflation |
Deflation is a negative rate of inflation where prices fall over a period of time resulting in a rise in the value of money.
Cost of living decreases. |
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Benign inflation |
A decline in the general price level ie fall in prices resulting from technological advances across the economy. |
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Generally considered a supply side cause of deflation |
Improved productivity Technological advances Significant fall in wages Persistent high exchange rate causing import prices to fall |
