Economics Inflation Study Cards

Enhance Your Learning with Economics - Inflation Flash Cards for quick understanding



Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time.

Consumer Price Index (CPI)

A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Demand-Pull Inflation

A type of inflation caused by an increase in aggregate demand, resulting in excess demand for goods and services.

Cost-Push Inflation

A type of inflation caused by an increase in production costs, such as wages or raw material prices, leading to higher prices for goods and services.

Hyperinflation

An extremely high and typically accelerating inflation, often leading to the breakdown of a country's monetary system.

Deflation

A sustained decrease in the general price level of goods and services in an economy over a period of time.

Stagflation

A situation characterized by high inflation, high unemployment, and stagnant economic growth.

Phillips Curve

A graphical representation of the inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Inflation Rate

The percentage change in the average price level of goods and services in an economy over a period of time.

Monetary Policy

The use of interest rates, money supply, and other tools by a central bank to control inflation, stabilize prices, and promote economic growth.

Fiscal Policy

The use of government spending and taxation to influence the economy, stabilize prices, and promote economic growth.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by the growth rate of real GDP.

Unemployment

The state of being without a job, often measured by the unemployment rate, which is the percentage of the labor force that is unemployed.

Interest Rates

The cost of borrowing or the return on investment, often influenced by inflation, monetary policy, and market conditions.

Exchange Rates

The value of one currency in terms of another currency, often influenced by inflation, interest rates, and market forces.

Purchasing Power

The ability to buy goods and services with a given amount of money, often influenced by inflation and changes in prices.

Real Wages

Wages adjusted for inflation, representing the purchasing power of workers' earnings.

Asset Prices

The prices of financial and non-financial assets, such as stocks, bonds, real estate, and commodities, often influenced by inflation and market conditions.

Stock Market

A market where shares of publicly traded companies are bought and sold, often influenced by inflation, interest rates, and economic conditions.

Bond Market

A market where debt securities, such as government bonds and corporate bonds, are bought and sold, often influenced by inflation, interest rates, and market conditions.

Commodity Prices

The prices of raw materials and primary agricultural products, often influenced by inflation, supply and demand, and market conditions.

Housing Market

A market where residential properties are bought and sold, often influenced by inflation, interest rates, and economic conditions.

International Trade

The exchange of goods and services between countries, often influenced by inflation, exchange rates, and trade policies.

Business Cycles

Fluctuations in economic activity characterized by periods of expansion (growth) and contraction (recession), often influenced by inflation and other economic factors.

Economic Stability

A state of balance and predictability in an economy, often characterized by low inflation, low unemployment, and steady economic growth.

Income Distribution

The way income is divided among individuals or households in an economy, often influenced by inflation, economic policies, and social factors.

Poverty

The state of being extremely poor, often measured by the poverty rate, which is the percentage of the population living below a certain income threshold.

Government Policies

Actions and decisions taken by the government to achieve specific economic and social objectives, often including measures to control inflation.

Central Banks

Institutions responsible for managing a country's money supply, controlling interest rates, and maintaining price stability, often playing a key role in controlling inflation.

Economic Indicators

Statistics and data used to measure and analyze various aspects of an economy, often including indicators related to inflation, employment, production, and trade.

Cost of Living

The amount of money needed to sustain a certain standard of living, often influenced by inflation and changes in prices.

Retirement Planning

The process of setting aside funds and making financial decisions to ensure a comfortable retirement, often considering factors such as inflation, investment returns, and life expectancy.

Saving Strategies

Methods and approaches used to save money and accumulate wealth, often considering factors such as inflation, interest rates, and investment options.

Investment Decisions

Choices made by individuals or organizations regarding the allocation of funds to different assets or projects, often considering factors such as inflation, risk, and potential returns.

Personal Finance

The management of an individual's or household's financial resources, often including budgeting, saving, investing, and planning for future expenses, taking into account factors such as inflation and income.

Global Economy

The interconnectedness of economies around the world, often influenced by factors such as inflation, trade, investment, and economic policies.

Developing Countries

Countries with relatively low levels of economic development and industrialization, often facing challenges related to inflation, poverty, and economic stability.

Developed Countries

Countries with high levels of economic development and industrialization, often characterized by low inflation, high living standards, and stable economies.