Krugman AP Macroeconomics Chapter 14
Subject:
Economics [1]
Tags:
inflation [2]
economics [3]
deflation [5]
Disinflation [6]
monetary policy [7]
Real income [10]
interest [11]
Inflationism [12]
Business [14]
behavior [15]
Human development [16]
Computing [17]
Electronic documents [19]
Psychoanalysis [21]
Human behavior [22]
Attachment theory [24]
Technology [25]
Chapter 14: Inflation: An Overview ? -The economic costs of inflation -How inflation creates winners and losers -Why policy makers try to maintain a stable rate of inflation -The difference between real and nominal values of income, wages, and interest rates -The problems of deflation and disinflation ? Inflation: Most common complaint: an increase in the price level makes everyone poorer- does not make everyone poorer Real Wage: the wage rate divided by the price level Real income: income divided by the price level Inflation Rate: the percent change per year in a price index?typically the consumer price index the percent increase in the overall level of prices per year ? ? The level of prices doesn?t matter Reducing prices = Reducing income