Inflation 0.0 / 5 ? BusinessEconomic EnvironmentBTEC NationalEdexcel Created by: K.muhammadiCreated on: 15-11-16 08:20 Price increases may lead to higher wage demand as people try to maintain their living standards. This is know as the: Wage- price spiral 1 of 8 Inflation is widely regarded as an important issue for macroeconomic policy-makers because inflation… Can cause widrer economic costs lncluding slower growth 2 of 8 A possible concern for businesses if deflation occurs is that: Consumers may postpone spending decisions 3 of 8 Deflation describes a period in the economy when The average level of prices is falling 4 of 8 If a consumer price index rises, it shows that On average, prices of consumer products are rising 5 of 8 Low inflation is also know as… Price stability 6 of 8 Inflation is widely regarded as an important issue for macroeconomic policy-makers because inflation… Can cause wider economic costs including slower growth 7 of 8 What is the UK Government’s target rate of inflation Two percent 8 of 8
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