Inflation (Quizlet Revision Activity)

Test your understanding of twelve concepts linked to the topic of inflation using this Quizlet matching resource

Inflation - some key terms to revise

• Constant prices: Tells us that data has been inflation adjusted
• Consumer price index: Measures (weighted) changes in the average cost of living for a representative household
• Cost push inflation: Prices driven higher due to an increase in higher unit wages, import prices, indirect taxes and so on
• Creeping inflation: Small rises in the general price level over a long period
• Deflation: Persistent fall in the general price level
• Demand pull inflation: Rising prices that result from a high level of aggregate demand (GDP) relative to potential output
• Disinflation: Fall in the rate of inflation but not sufficient to bring about deflation
• Purchasing power: The buying power of a unit of currency. It is inversely related to the rate of inflation.
• Real wage: Nominal wage adjusted for the effects of inflation
• Relative deflation: An economy with an inflation rate which is lower than comparable economies
• Stagflation: Combination of slow growth and rising inflation
• Wage price spiral: Where workers bid for higher pay because they have seen real income eroded by rising prices.