About This Chapter
Types and Effects of Inflation - Chapter Summary
This chapter's lessons will help you define inflation and understand its impact on the economy and on businesses and consumers. You'll learn how inflation must be considered when making investment decisions and see how senior citizens may be especially hurt by inflation.
Our instructors will explain what demand-pull inflation and cost-push inflation are, as well as the impact of supply side economics on inflation. The Phillips curve model, hyperinflation and money supply are explored in this chapter, too. After you've watched all the lessons, you'll be able to:
- Identify the impact of inflation on supply and demand
- Show how cost-push inflation is created
- Explain the difference in cost-push and demand-pull inflation
- See the link between unemployment and inflation
- Determine the rate of inflation
- Define the consumer price index
- Find out what constitutes hyperinflation
You'll get a thorough look at these topics with our brief and engaging video lessons. Each includes a multiple-choice quiz that lets you assess your learning. If you need to go back and review a particular topic in the lesson, video tags make it easy to find the right spot. Still don't understand? You can contact the instructor for personalized help.
1. 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.
2. Cost-Push Inflation: How the Supply Side of the Economy Leads to Inflation
Learn about cost-push inflation, when higher production prices lead to an increase in prices within the economy. Using real-world examples, this lesson describes what it is, what causes it and how economists illustrate it.
3. Demand-Pull Inflation vs Cost-Push Inflation
Discover two basic types of inflation, demand-pull and cost-push inflation. Learn what factors cause each type of inflation and some of the key differences between each.
4. The Phillips Curve Model: Inflation and Unemployment
Can we have low unemployment and low inflation at the same time? Some economists think the answer is no. In this lesson, we'll explore the relationship between inflation and unemployment in the short run, what economists call the Phillips Curve.
5. The Phillips Curve in the Long Run: Inflation Rate
How do unemployment and inflation affect each other? In this lesson, you'll discover why the Phillips curve is vertical in the long run with the help of some real world examples.
6. How Inflation and Fraud Affect Older Adults
What if the money you have in savings suddenly had less buying power than it did before? Or worse yet, what if it disappeared? This lesson explores the impact of inflation and fraud on older consumers.
7. 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.
8. Predicting the Effect of Inflation on Investment Decisions
Successful investment decisions are made carefully by financial advisers that understand the micro- and macro-economic factors at play. In this lesson you'll learn how one of those factors - inflation - can help investors anticipate market trends.
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Other chapters within the US History 2 Study Guide course
- Industrialization & Urbanization in America
- The Progressive Era
- American Imperialism
- The Roaring 20s
- The Great Depression
- America & World War II
- America in the Cold War
- US Protests, Activism & Civil Rights
- 1970s America
- The Presidents of Contemporary America
- Explaining American Traditions
- 21st Century America (1992-2013)
- Elements of American Government
- U.S. Public Policy & Social Programs
- The Economics of Public Policies
- Fiscal & Economic Policy of American Government
- Employment and Unemployment Issues
- Modern Economic Systems Overview
- Global Trade, Global Markets & Macroeconomics
- Principles and Basis of Business Decisions
- International Trade Treaties & Regulations
- Fundamentals of Geography
- Geography and Farming
- Geography & the Global Economy
- Political Geography Overview
- Settlement Patterns Overview
- World Population
- Human and Cultural Migration