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    Exercise 8: Inflation

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    Kenon Joseph Hinanay
    The document defines key terms related to inflation including: inflation, consumer price index, purchasing power of money, core inflation, headline inflation, deflation, cost-push inflation, full employment, demand-pull inflation, and producer price index. It provides brief descriptions of each term and cites sources for additional information.

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    Exercise 8: Inflation

    Uploaded by

    Kenon Joseph Hinanay
    12 views2 pages
    The document defines key terms related to inflation including: inflation, consumer price index, purchasing power of money, core inflation, headline inflation, deflation, cost-push inflation, full employment, demand-pull inflation, and producer price index. It provides brief descriptions of each term and cites sources for additional information.

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    Inflation

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    The document defines key terms related to inflation including: inflation, consumer price index, purchasing power of money, core inflation, headline inflation, deflation, cost-push inflation, full employment, demand-pull inflation, and producer price index. It provides brief descriptions of each term and cites sources for additional information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views2 pages

    Exercise 8: Inflation

    Uploaded by

    Kenon Joseph Hinanay
    The document defines key terms related to inflation including: inflation, consumer price index, purchasing power of money, core inflation, headline inflation, deflation, cost-push inflation, full employment, demand-pull inflation, and producer price index. It provides brief descriptions of each term and cites sources for additional information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Exercise 8: Inflation

    Part I: Definition ofTerms

    Direction: Write your answer in the space s provided

    1. Inflation
    It is a sustained increase in the general price level of goods and services in an economy over
    a period of time.

    2. Consumer Price Index


    It measures changes in the price level of a weighted average market basket of consumer
    goods and services purchased by household.

    3. Purchasing Power of Money


    It is the quantity of goods and services that can be bought with a monetary unit.

    4. Core Inflation
    It represents the long run trend in the price level.

    5. Headline Inflation
    It is the measure of the total inflation within an economy, including commodities such as
    food and energy prices which tend to be much more volatile and prone to inflationary spikes.

    6. Deflation
    The action or process of deflating or being deflated.

    7. Cost-push inflation
    It is the decrease in the aggregate supply of goods and services stemming from an increase
    in the cost of production.

    8. Full employment
    The condition in which virtually all who are able and willing to work are employed.
    9. Demand-pull inflation

    It is the increase in aggregate demand, categorized by the four sections of the


    macroeconomy: households, business, governments, and foreign buyers.

    10. Producer price index


    It is a price index that measures the average changes in prices received by domestic
    produces for their output.

    https://en.wikipedia.org/wiki/Inflation
    www.insee.fr
    debitoor.com
    www.investopedia.com 

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