Principles of Macroeconomics / Unit 6 MAC 0502 short lesson, about 20 seconds
Not a Relative Price Change
Captions available
The idea
Inflation is a rise in the average level, not a rise in one price. One good getting dearer while others get cheaper is a relative price change.
In practice
Tuition rising while laptops fall tells you about those two markets, not about inflation.
Where people slip
A one-time jump that then stops is also not inflation, because inflation is ongoing.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics