1. Chapter 13 : Lesson 2 Inflation

2. Essential Question: Whom does inflation hurt the most?

5. Deflation: sustained decrease in the general level of the prices of goods and services

6. World Inflation Rates

7. Price Index: statistical series used to measure changes in the price level over time

8. Market Basket: representative collection of goods and services used to compile a price index

9. Base Year: year serving as point of comparison for other years in the price index or other statistical measure

10. Creeping Inflation: relatively low rate of inflation, usually 1 to 3 percent annually

11. Hyperinflation: abnormal inflation in excess of 500 percent per year; last stage of monetary collapse

13. Stagflation: combination of stagnant economic growth and inflation

14. Demand-pull Inflation: explanation the prices rise because all sectors of the economy try to buy more goods and services than the economy can produce

15. Cost-push Inflation: explanation that rising input costs, especially energy and organized labor, drive up the cost of products for manufacturers and thus cause inflation

16. Creditors: persons or institutions to whom money is owed

17. debtors: persons or institutions that owe money

18. Review Question:
Chapter 13 : Lesson 2
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