Chapter 3: Purchasing Power

Rapidly rising prices that are out of control.

• disinflation

• deflation

• hyperinflation

• inflation

High prices followed by drops and then high prices again.

• reflation

• inflation

• deflation

• hyperinflation

Rising prices due to scarce resources or increased difficulty in obtaining resources.

• demand-pull inflation

• cost-push inflation

• reflation

• real-cost inflation

A decrease in the general level of prices for goods and services.

• inflation

• deflation

• reflation

• hyperinflation

Rising prices as a result of consumers wanting to buy more goods and services than producers supply.

• demand-pull inflation

• cost-push inflation

• real-cost inflation

• time value of money

Rising prices with the rate of increase slowing down.

• deflation

• reflation

• disinflation

• inflation

An increase in the general level of prices for goods and services.

• reflation

• inflation

• hyperinflation

• deflation

A concept that says a dollar you receive in the future will be worth less than a dollar you receive today.

• time value of money

• productivity

• real-cost inflation

• cost-push inflation

Rising prices as a result of producers' costs increasing.

• demand-pull inflation

• real-cost inflation

• time value of money

• cost-push inflation

Prices set to be competitive with prices of similar products.

• market-based pricing

• cost-plus pricing

• value-based pricing

• cost-recovery pricing