297, 300-302 hw quiz 2/14 Flashcards
1
Q
inflation
A
general increase in prices across an economy
2
Q
quantity theory
A
too much money in the economy creates inflation
3
Q
wage-price spiral
A
raising wages causes higher prices
4
Q
fixed income
A
income that does not increase even when price goes up
5
Q
deflation
A
sustained drop in price level
