Inflation

Aggregate Supply

INFLATION Economic Growth
Unemployment


3/30/2023 1

, WHAT IS INFLATION?
A sustained increase in the average price level for goods and services
causing the value of money to fall. Inflation is measured by the
______________ and the current rate of inflation in the UK is __________



https://www.thetimes.co.uk/money-mentor/article/inflation-interest-rates/

READ ARTICLE ABOVE




3/30/2023 2

, INFLATION


Inflation is a sustained increase
in the average price level of the
economy
Deflation is a sustained fall in
the average price level of the
economy
Disinflation is a fall in the rate of
inflation
Stagflation refers to a situation
with persistent high inflation
combined with low economic
growth

, MISCONCEPTION- DEFLATION

If the general price increase goes from
10.4% to 8% has deflation taken place?


Explain your response.




3/30/2023 4