Applied Macro Economics

Macro Economic
Environment
Macro Economic Environment
Module Description

Applied Macro Economics

Inflation and Deflation

Chapter Table of Contents

Chapter 3.1

Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Aim

Instructional Objectives

Learning Outcomes

Applied Macro Economics | Macro Economic Environment 119

 Inflation and Deflation

3.1.1. Inflation
(i) Meaning

(ii) Causes

120 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Applied Macro Economics | Macro Economic Environment 121

 Inflation and Deflation

122 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(iii) Effects

Applied Macro Economics | Macro Economic Environment 123

 Inflation and Deflation

124 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(iv) Calculation

𝑄𝑖0 𝑃𝑖𝑡
𝑄𝑖0 𝑃𝑖0

Applied Macro Economics | Macro Economic Environment 125

 Inflation and Deflation

𝑄𝑖0
𝑃𝑖0
𝑃𝑖𝑡

𝑄𝑖0 𝑃𝑖𝑡
𝑄𝑖0 𝑃𝑖0

𝑄𝑖0
𝑃𝑖0
𝑃𝑖𝑡

126 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(v) Self-assessment Questions

Applied Macro Economics | Macro Economic Environment 127

 Inflation and Deflation

3.1.2. Types of Inflation

(i) On the basis of causes


128 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Applied Macro Economics | Macro Economic Environment 129

 Inflation and Deflation

130 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Applied Macro Economics | Macro Economic Environment 131

 Inflation and Deflation

(ii) On the basis of intensity



132 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(v) Self-assessment Questions

Applied Macro Economics | Macro Economic Environment 133

 Inflation and Deflation

134 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

3.1.3. Deflation
(i) Meaning

(ii) Causes

Applied Macro Economics | Macro Economic Environment 135

 Inflation and Deflation

136 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(iii) Effects

Applied Macro Economics | Macro Economic Environment 137

 Inflation and Deflation




138 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(iv) Control of Deflation

Applied Macro Economics | Macro Economic Environment 139

 Inflation and Deflation

(v) Comparison of Inflation and Deflation

140 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

(v) Self-assessment Questions

Applied Macro Economics | Macro Economic Environment 141

 Inflation and Deflation

Summary
o

142 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Terminal Questions

Applied Macro Economics | Macro Economic Environment 143

 Inflation and Deflation

Answer Keys
Self-assessment Questions
Question No. Answer

Terminal Questions
Question No. Answer

144 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Activity

Applied Macro Economics | Macro Economic Environment 145

 Inflation and Deflation

Case Study

146 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Discussion Questions:

Applied Macro Economics | Macro Economic Environment 147

 Inflation and Deflation

Bibliography
e-References

Image Credits


External Resources

Video Links

Topic Link

148 Applied Macro Economics | Macro Economic Environment

Inflation and Deflation

Notes:

Applied Macro Economics | Macro Economic Environment 149

 Inflation and Deflation

Notes:

150 Applied Macro Economics | Macro Economic Environment