IGCSE Econ unit 4 - government & the macroeconomy

disinflation is inflation is increasing but at a decreasing rate

contractionary monetary policy is ...

contractionary monetary policy is when central banks decrease the interest rate

demand-pull inflation is caused by increased demand

demand-side policy is about...

inflations makes people poorer

when demand increases ...

cost-push inflation is caused by decreasing supply

supply-side policy is ...

low inflation is good because people don't become too poor and there is enough demand for people to consume goods

hyperinflation is 50% increase in prices in one month

when supply increases price increases

inflation is prices increasing

CPI is a measure of ...

central banks can use contractionary monetary policy to reduce inflation

inflation makes people poorer because they can buy less goods with their money

which is not a macroeconomic tool

which is not a macroeconomic goal of the country ...

which is not a supply-side policy tool ...

when demand increases ...

which is not a factor of production ...