A rise in the general or average price level of all the goods and services produced in an economy.
Inflation caused by rising costs of production.
Inflation caused by increasing demand for output or "too much money chasing too few goods."
A sustained decrease in the average price level of all the goods and services produced in the economy.
Inflation as measured by the percent change in CPI from one year to the next.
Currency that a government has declared to be legal tender.
Money whose value comes from an object that has value itself.
An item or token that has no value, but can be exchanged on demand for something that does have value.
Consumer Price Index (CPI)
A price index that measures the cost of a fixed basket of consumer goods and services and compares the cost of this basket in one time period with its cost in some base period.
Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.
Medium of Exchange
Using money to exchange goods and services to avoid pure bartering.
Store of Value
Using money to save and retrieve at a later time.
Standard of Value
Using money to set uniform prices for goods and services.
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