Principles of Macroeconomics / Unit 6 MAC 0501 short lesson, about 20 seconds
What Inflation Is
Captions available
The idea
Inflation is a general and ongoing rise in the level of prices across an economy. The inflation rate is the percentage change in that level.
In practice
Deflation is the same thing in reverse: a falling average level of prices.
Where people slip
Both describe a rate of change, not a level. High prices are not inflation, and low prices are not deflation.
Your place on the trail
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