Which GDP take into account inflation?

Which GDP values do NOT take into account inflation?

Which of the following is a cause of inflation?

Which of the following is an impact of inflation on firms?

Which of the following is an impact of inflation on individuals?

Inflation is defined as the rate of change in the ________ over time.

Which of the following best describes inflation?

Which of the following is a measure of inflation?

Which index is the preferred measure and the Bank of England target?

Both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) are ________.

Who publishes data on the CPI and RPI in the UK?

How many items are in each basket used by the ONS?

Different items are ______ according to their importance in terms of how much their price changes impact upon consumers.

Which of the following is NOT mentioned as having a high weighting in the basket of goods and services?

Which of the following is a recent addition to the basket of goods and services?

The ONS updates the 'basket' every year to reflect changes in ______ patterns.

Few people fit the definition of what term according to the limitations of measurement? Few people fit the definition of “______”.

What is the government’s target measure of inflation?

The RPI is considered more realistic than the CPI because it includes mortgage payments and interest.

What does the CPI ignore when measuring inflation? CPI ignores improvements in the _______ of goods and services.

What is expressed in monetary terms and does not take into account inflation?

Constant prices are prices that have been adjusted for inflation. They are ______ values.

Current prices are prices that have not been adjusted for inflation. They are ______ values.

Demand-pull inflation occurs when there is too much money (______) chasing too few goods/services (supply).

What is the formula for aggregate demand (AD)?

Which of the following is the largest component of aggregate demand (AD)?

__________ increases disposable income, allowing people to spend more.

__________ makes borrowing more attractive and saving less rewarding.

__________ can increase export growth.

__________ in other countries (such as China/India) may increase demand for UK exports.

__________ of future growth may cause higher consumer spending and investment.

What is the immediate effect of a cut in interest rates according to the diagram?

Refer to the DEMAND-PULL INFLATION DIAGRAM. When aggregate demand (AD) increases to AD1, what happens to the price level in the short run?

A cut in interest rates makes borrowing on credit more attractive and saving less rewarding, leading to a rise in consumption.

Cost-push inflation occurs due to ________, firms increasing prices.

Which of the following is a cause of cost-push inflation?

What happens when raw materials become scarce and demand increases?

Higher taxes imposed by the government on firms can lead to cost-push inflation.

A weaker exchange rate or rising prices abroad can make imports more expensive, leading to higher costs of production.

Natural disasters or war can temporarily or permanently reduce the supply of raw materials or disrupt the supply chain, increasing their prices.

Fill in the blank: Higher wage costs can lead to higher prices, then workers will want higher wages, leading to a _________.

What is the effect of an increase in wage rates on a firm's costs of production?

What is deflation? Deflation is a ________ in the general price level.

If inflation changes from 2.7% to 2.3%, does this mean prices are falling?

Prices increasing at a slower rate is called ________.

Which of the following best describes disinflation?

Deflation occurs in periods of ................ growth (GDP).

As prices fall, what do consumers do because they think prices will fall further?