O'Reilly logo

Economics DeMYSTiFieD by Eric Dodge, Melanie Fox

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

chapter 13Inflation

When the price of one or two things goes up, we notice. Whether we are paying more for gasoline or for a pizza, when the price of something we want to buy goes up, it makes us feel poorer. But what happens when the price of everything goes up? Are we even worse off? The answer to this might be surprising.

CHAPTER OBJECTIVES

After completing this chapter, the student should be able to:

1. Explain the Consumer Price Index.

2. Define and calculate inflation.

3. Explain some of the problems that inflation may cause.

4. Explain the difference between deflation and disinflation.

5. Describe a theorized relationship between inflation and unemployment.

Introduction to Inflation

In Chapter 6, we talked about the equilibrium price of ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required