Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
Real Wage |
Wage rate ÷ price level |
|
|
Real Income |
Income ÷ price level |
|
|
Inflation Rate |
% change per year in a price index - typically the consumer price index |
|
|
Shoe-Leather Cost |
Increased costs of transactions caused by inflation |
|
|
Menu Costs |
The real costs of changing listed prices |
|
|
Unit-of-Account Costs |
Arise from the way inflation makes money a less reliable unit of measurement |
|
|
Nominal Interest Rate |
The interest rate actually paid for a loan |
|
|
Real Interest Rate |
The nominal interest rate minus the rate of inflation |
|
|
Disinflation |
The process of bringing the inflation rate down |
|
|
Aggregate Price Level |
A measure of the overall level of prices in the economy |
|
|
Market Basket |
A hypothetical set of consumer purchases of goods & services |
|
|
Price Index |
Measures the cost of purchasing a given market basket in a given year. The index value is normalized so that it is equal to 100 in the selected base year |
|
|
Consumer Price Index(CPI) |
Measures the cost of the market basket of a typical urban American family |
|
|
Producer Price Index(PPI) |
Measures changes in the prices of goods and services by producers |
|
|
GDP Deflator |
For a given year is 100 times the ratio of nominal GDP to real GDP in that year |
