April 19, 2016

Unit 5

Misery Index

  • A combination of inflation and unemployment in any given year. Single digit misery is good.
  • Supply Shocks: rapid and significant increase in resource cost.
  • Disinflation: reduction and inflation fro year to year. Found in the LRPC.
  • Deflation: general decline in prices.
  • Inflation: general rise in prices.
  • Stagflation: unemployment and inflation rise/increase at the same time.

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