Define and distinguish between inflation and deflation
Describe how a CPI is used to measure and monitor inflation and deflation
Explain and distinguish between demand-side and supply-side causes of inflation
Analyse the consequences of inflation and deflation for consumers, workers, savers lenders, firms and the economy as a whole
Discuss the range of policies available to a government to control inflation and deflation and analyse how effective they might be
- Distinguish between inflation, disinflation and deflation.
- Explain how inflation and deflation are typically measured by calculating a consumer price index (CPI).
- Explain how different income earners may experience a different rate of inflation when their pattern of consumption is not accurately reflected by the CPI.
- Explain how inflation figures may not accurately reflect changes in consumption patterns and the quality of the products purchased.
- Explain how economists measure a core/underlying rate of inflation.
- Explain how a producer price index measuring changes in the prices of factors of production may be useful in predicting future inflation.
- HL Only Construct a weighted price index, using a set of data.
- HL Only Calculate the inflation rate from a set of data.
- Discuss the possible consequences of a high inflation rate.
- Discuss the possible consequences of deflation.
- Explain demand-pull inflation.
- Explain cost-push inflation.
- Evaluate government policies to deal with the different types of inflation.
ASSESSMENT: Complete the crossword
Complete the Kognity review of inflation.