Inflation

HideShow resource information
  • Created by: Lottie
  • Created on: 29-04-12 18:59
  • measures the annual rate of change of the general price level in the economy
  • sustained increase in the average price level

INFLATION AND PRICE LEVEL

  • When prices rise, the value of money falls
  • inverse relationship between the p level and the internal purching power of money
  • ppl can protect themselves against the effect of inflation by investing in financial asssets that give a rate of return at least equal to…

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Inflation and deflation resources »