Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/14

Click to flip

14 Cards in this Set

  • Front
  • Back
Inflation
An increase in the general (average) price level of goods and services in the economy
Deflation
A decrease in the general (average) price level of goods and services in the economy
Consumer price index (CPI)
An index that measures changes in the average prices of consumer goods and serivices
Base Year
A year chosen as a reference point for comparison with some earlier of later year
Disinflation
A reduction in the rate of inflation
Nominal income
The actual number of dollars recieved over a period of time
Real income
The actual number of dollars received (nominal income) adjusted for changes in the CPI
Wealth
The value of the stock of assets owned at some point in time.
Nominal interest rate
The actual rate of interest without adjustment for the inflation rate
Real interest rate
The nominal rate of interest minus the inflation rate
Demand-pull inflation
A rise in the general price level resulting from an excess of total spending (demand)
Cost-push inflation
An increase in the general price level resulting from an increase in the cost of production
Hyperinflation
An extremly rapidrise in the general price level
Wage-price spiral
A situation that occurs when increases in nominal wage rates are passed on in higher prices, which, in turn, result in even higher nominal wage rates and prices