Macroeconomics

Card Set Information

Author:
jacob
ID:
44536
Filename:
Macroeconomics
Updated:
2010-10-24 12:29:37
Tags:
Chp11 Inflation
Folders:

Description:
Chp11 Inflation
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  1. Real Interest rate:
    Nominal annual interest rate – annual inflation rate
  2. Menu costs:
    Costs to firms ofchanging prices
  3. Increase in consumer spending
    leads to demand-pull inflation if economy is currently operating at close or atfull employment.

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