Lesson 45 Flashcards
1
Q
Who sets the inflation target?
A
government
2
Q
Which organisation uses interest rates?
A
Bank of England
3
Q
What is said by inflation being able to be symmetric
A
The ideal is 2%
It can be +/- 1%
4
Q
Why is some inflation good?
A
Deflation, and rapid deflation, discourages buying as e.g. if you see a PS5 on sale for £750, but know they’re restocking soon, you’ll wait it out for a better deal
Therefore, harming the economy
5
Q
Index number
A
a way of comparing the value of a variable with a vase observation such as a location or past period
6
Q
How to find index number?
A
Index = (diff/original x 100)
6
Q
A
