Economics GCSE OCR

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Price stability: the general level of prices is kept constant or grows at an acceptably low rate over time.

Inflation: a sustained increase in the general price level over time

Rate of inflation: the rate at which the general price level rises over time.

CPI- offficial measure of the rate of inflation.

The government takes an average basket of goods and records the change in price.

Causes: demand pull and cost push.

Demand pull, when the total ad of the economy rises.

Cost push: when costs of production


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