Q4 SS

• Inflation - the general price hike & diminishing value of money with negative effect to the consumer
• Market Basket - contains the products usually consumed by every family
• CPI - measured the changes in prices of products or services
• Purchasing power - actual value of money & its use which is affected by inflation
• Demand-pull inflation - income is a determinant of demand for goods & services
• Cost-push inflation - people can't produce goods or services without using resources or raw materials
• Structural inflation - rapid increase in prices due to the structural defects of the economy