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13-3 Vocab

QuestionAnswer
Inflation A sustained rise in the general price level or a fall in purchasing power of money.
Consumer Price Index (CPI) A measure of changes in the prices of goods and services commonly purchased by consumers.
Producer Price Index (PCI) A measure of changes in wholesale prices.
Inflation rate the rate of change in prices over a set period of time.
Hyperinflation A rapid, uncontrolled rate of inflation in exces of 50 percent per month.
Deflation A decrease in the general price level.
Demand-pull inflation Results when total demand rises faster than the production of goods and services.
Cost-push inflation Results when increases in the costs of production push up prices.
Wage-price spiral A cycle that begins with increased wages, which lead to higher production costs, which in turn result in higher prices, which result in demands for even higher wages.
Created by: joannw15
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