Smaller deck

• There are two types of inflation - demand-pull and cost-push
• The Gini coefficient measures income inequality, with higher values indicating greater inequality.
• Income inequality is the unequal distribution of wealth between different groups within society.
• Income inequality can be measured using the Gini coefficient or other methods such as the Lorenz curve.
• Cost push is where costs increase due to factors such as oil price rises or wage increases, which then pushes up prices.
• demand pull inflation: when demand for goods and services increases faster than the economy can supply them

  Cost push inflation: when costs increase, pushing up the prices
• Cost-push inflation happens when production costs rise, causing businesses to raise their prices.
• Governments use fiscal policy (taxes and spending) to manage inflation by controlling aggregate demand.
• • What is proportional tax?
  • The % of income paid in tax remains the same as income increases
  • E.G. Income tax in Russia (flat 13%)