Inflation + Deflation- Macro

Question 1

Types of inflation

Answer 1

Cost push- Caused by increasing COP

Demand pull- Caused by low IR or econ growth

Question 2

Definition of inflation

Answer 2

A sustained, general increase in the price level of goods in an economy over time

Question 3

Types of deflation

Answer 3

Benign- Caused by supply side improvements

Malign- Caused by falling demand