Glossary Category: Economics - Page 38 - 3auk

causes of inflation

Demand-pull inflation arises when aggregate demand expands faster than aggregate supply, particularly when the economy is operating near

The nominal value refers to the monetary value of goods, services, assets, or income measured in current prices

The real value of money or an economic variable refers to its value adjusted for inflation, which measures

Disinflation refers to a decrease in the rate of inflation within an economy over a specific period. For

A sustained decrease in the general price level, typically defined as lasting for two consecutive quarters or more.

Inflation refers to a sustained increase in the general price level of goods and services in an economy

Potential growth is the sustainable, long-run increase in an economy’s maximum output capacity, driven by improvements in the

Actual growth is the short-term percentage change in a country’s real GDP, driven by an increase in aggregate

The Aggregate Demand (AD) curve slopes downward, indicating that as the price level rises, the quantity of real

Nominal GDP, also known as nominal gross domestic product, measures the total market value of all final goods