Inflation

Description

This mindmap outlines the concept of inflation. It's an ideal revision tool for those studying A-Level or equivalent economics
eleanor.adamandi
Mind Map by eleanor.adamandi, updated more than 1 year ago More Less
jackexamtime
Created by jackexamtime almost 11 years ago
eleanor.adamandi
Copied by eleanor.adamandi almost 11 years ago
eleanor.adamandi
Copied by eleanor.adamandi almost 11 years ago
41
2

Resource summary

Inflation
  1. The steady and persistent rise in the general level of prices, resulting in a reduction in the purchasing power of money
    1. Measured using the Consumer Price Index
      1. Limitations
        1. Based on average pattern of spending
          1. Weights used apply in base year only
            1. Changes in quality of goods not measured
              1. New products on market not included
                1. Switch to new brands not measured
                2. Uses of Consumer Price Index
                  1. Measure inflation
                    1. Wage negotiations
                      1. Widen tax bands
                        1. Indexation of Investments
                          1. Measure of International Competitiveness
                        2. Causes of Inflation
                          1. Demand- Pull Inflation
                            1. Cost-Push Inflation
                              1. Government Induced Inflation
                              2. Economic Effects of Inflation
                                1. Production/Consumption Encouraged
                                  1. People on Fixed Incomes Lose Out
                                    1. Speculation Encouraged
                                      1. Loss of International Competitiveness
                                        1. Benefits to Government
                                        Show full summary Hide full summary

                                        Similar

                                        27. Economic Development & Growth
                                        samstevenson2014
                                        Economic Development & Growth
                                        eleanor.adamandi
                                        Causes of Inflation
                                        eleanor.adamandi
                                        Income Elasticity of Demand
                                        eleanor.adamandi
                                        Economic Development & Growth
                                        eleanor.adamandi
                                        Formulas for Income Elasticity of Demand & Cross Elasticity of Demand
                                        eleanor.adamandi
                                        Shifts in the Supply Curve
                                        eleanor.adamandi
                                        Economic Development and Growth
                                        eleanor.adamandi
                                        Economic Effects of Inflation
                                        eleanor.adamandi
                                        Economics review
                                        Sarah Egan
                                        Introduction to Inflation
                                        eleanor.adamandi