Practise distinguishing inflation, deflation and disinflation, calculating CPI and real values and evaluating causes and consequences of changing the general price level.
The graph shows the rate of inflation for seven countries for 2015 and 2016.
What can be concluded from this graph?
Prices in Costa Rica rose in 2015 but remained constant in 2016.
Prices in Ecuador and Mauritius were lower in 2016 than in 2015.
Prices in India and Malaysia remained constant in 2016 and 2015.
Prices in Thailand and Japan were lower in 2016 than in 2015.
If a country is experiencing a period of high inflation, which groups will benefit the most from this?
companies that
export the majority
of their output
fixed income
earners
those with
high debts
yes
yes
no
no
yes
yes
yes
no
no
no
no
yes
Which term relates to a fall in the domestic real value of a currency?
deflation
depreciation
appreciation
inflation