Inflation and Deflation Flashcards
1
Q
Which one of the government’s macroeconomic aim informs this chapter?
A
a slow and predictable increase in general price level of goods and services over time. this occurs when there is a low and stable inflation rate
2
Q
How is inflation measured?
A
Inflation is measured by the percentage change in the Consumer Price
Index (CPI) between a current year and the previous year.
3
Q
A
