economics Flashcards
(7 cards)
1
Q
what does inflation mean
A
-inflation can lead to a fall in purchasing power
-inflation also means that cost of living has increased
2
Q
what are main reason for inflation
A
overall to much demand known as the demand-pull inflation
-increase in income
-rise in government spending
3
Q
what is the rise cost known as
A
it is known as the push inflation
4
Q
what is a rise of cost caused by
A
it is caused by a rise in cost of production
5
Q
what is economic growth?
A
it the increase in the economic activity in a county
6
Q
what is GDP
A
the total value of output
7
Q
A
