Inflation and Bubbles Flashcards
1
Q
Inflation
A
Increase in currency supply relative to the number of people using it, resulting in rising prices of goods and services over time
2
Q
Consumer Price Index
A
Price of a collection of items periodically
3
Q
Nominal GDP
A
not adjusted for inflation
4
Q
Real GDP
A
adjusted for inflation
5
Q
Demand Pull Inflaion
A
Too much money chasing too few goods
6
Q
Cost Push Inflation
A
A shortage of a resource required to produce goods
7
Q
Speculation
A
Trading a financial instrument involving high risk, expecting high turns. in essence flipping
8
Q
Bubble
A
Rapid price increase driven by irrational decisions
