EconomicsCode 9708

Price stability

What this topic asks you to be able to do

  • how inflation, deflation and disinflation are each defined
  • gauging changes in the price level: the consumer price index (CPI); potential problems when making such measurements
  • the difference between figures stated in money terms (nominal) and real data
  • what brings about inflation: cost-push and demand-pull inflation
  • consequences of inflation