Value of an economic variable based on current prices, taking no account of charging prices through time
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Real value
Value of an economic variable, taking account of charging prices through time
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Index number
A device for comparing the value of a variable in one period or location with a base observations (e.g. RPI measures the average level of prices relative to a base period)
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Consumer Price Index (CPI)
A measure of the general level of prices in the UK, adopted as the government's inflation target since December 2003
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Inflation
The rate of change of the average price level: for example, the percentage annual rate of the change of the CPI
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Retail price index (RPI)
A measure of the average level of prices in the UK
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Cost push inflation
Inflation initiated by an increase in the costs faced by firms, arising on the supply side of the economy
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Demand- pull inflation
Inflation initiated by an increase in aggregate demand
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Money stock
The quantity of money in the economy
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Deflation
A situation in which the average level of prices is falling - negative inflation
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Disinflation
A fall in the inflation rate. It means that the general price level is increasing at a slower rate.
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Other cards in this set
Card 2
Front
Real value
Back
Value of an economic variable, taking account of charging prices through time
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