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    Master this deck with 14 terms through effective study methods.

    Generated from uploaded handwritten-notes

    Created by @babbyk77

    What is inflation?

    Causes purchasing power to fall.

    What is deflation?

    Increases purchasing power of money.

    How is inflation measured?

    By tracking changes in the price level.

    What is demand-pull inflation?

    Occurs when demand exceeds supply.

    What is cost-push inflation?

    Happens when production costs rise.

    How does inflation impact wages?

    Workers demand higher wages to maintain living standards.

    What happens to exports during inflation?

    They become less competitive internationally.

    What is the relationship between interest rates and inflation?

    Higher inflation typically leads to increased interest rates.

    What is unemployment?

    People willing to work cannot find jobs.

    How is unemployment measured?

    By the percentage of the labor force without jobs.

    What is hyperinflation?

    An extreme increase in price levels, often over 50% monthly.

    What is seasonal unemployment?

    Occurs when jobs depend on specific seasons.

    What is voluntary unemployment?

    When individuals choose not to work despite job availability.

    What is frictional unemployment?

    Short-term unemployment between jobs.