Ch 7: Basic Concepts of Inflation

About This Chapter

This chapter offers a variety of study resources you can use to make sure you fully comprehend basic concepts of inflation. Enjoy access to bite-sized lessons, multiple-choice quizzes and a practice exam that make it easy to earn course credit, improve your grades or study for an upcoming test.

Basic Concepts of Inflation - Chapter Summary

Deepen your understanding of basic concepts of inflation by taking advantage of the expert instruction in this self-paced chapter. Our lessons offer the knowledge boost you need to master topics like deflation, the money illusion and stagflation. If you develop questions while examining this chapter, feel free to submit them to our experts. At any time, gauge your comprehension of the lessons by taking self-assessment quizzes and a chapter exam. When finished, you will be ready to:

  • Define and list types, causes and effects of inflation
  • Discuss hyperinflation and its connection to the money supply
  • Explain the causes and effects of deflation and stagflation
  • Describe the impact inflation has on suppliers and demanders
  • Share the definition and examples of the money illusion
  • Exhibit knowledge of the macro-consequences of unemployment

6 Lessons in Chapter 7: Basic Concepts of Inflation
Test your knowledge with a 30-question chapter practice test
Inflation: Definition, Types, Causes & Effects

1. Inflation: Definition, Types, Causes & Effects

In this lesson we will take a look at inflation and its importance. We will discuss the types and causes of inflation, as well as look at the effects of inflation.

Hyperinflation, Money Supply and the Consumer Price Index

2. Hyperinflation, Money Supply and the Consumer Price Index

Is there such a thing as too much money? Maybe. What happens when inflation is excessive? This lesson explores what hyperinflation is and how it is connected with the money supply.

What is Deflation? - Definition, Causes & Effects

3. What is Deflation? - Definition, Causes & Effects

You may not realize it, but prices sometimes go down, and that's not always a good thing. In this lesson, you'll learn what deflation is, its causes, and its effects. A short quiz follows the lesson.

Stagflation: Definition, Causes & Effects

4. Stagflation: Definition, Causes & Effects

There are different types of economic problems, but few match stagflation. In this lesson, you'll learn what stagflation is, what causes it, and how it affects an economy suffering from it. A short quiz follows the lesson.

Effects of Inflation on Suppliers and Demanders

5. Effects of Inflation on Suppliers and Demanders

In this lesson, you'll discover who benefits and who suffers from a sustained increase in prices within an economy. We'll cover the effects of expected and unexpected inflation on savers/creditors and borrowers/debtors.

The Money Illusion: Definition & Examples

6. The Money Illusion: Definition & Examples

After this lesson, you'll never look at money the same! In fact, after reading this lesson you may find that you, too, have fallen into this trap called the money illusion, but we'll figure out how to get around that.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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