COMMERCE 1B03 Chapter 2: Chapter 2: pg7
14 Oct 2018
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Document Summary
Deflation : a situation in which prices are declining. Stagflation : a situation in which the economy is slowing but the prices are growing up regardless. Consumer price index : a monthly statistic that measures the pace of inflation or deflation. Measures monthly changes in the price of a basket of products bought by an average consumer: food, shelter, transportation . Human development index : a measure of the country"s progress that includes wealth, health, and education. Macroeconomic conditions - view of the marketplace. One consider the inflationary or recessionary state of the economy. Ability to buy is tied to income. Changes in income, income distribution, consumer spendings and savings. Disposable income : is the money left after paying taxes. As disposable income rises, more families and individuals can afford the good life. Discretionary income : money left after paying taxes and necessities.
