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Economics AOS2 Unit3 Definitions
Inflation
12
Economics
12th Grade
04/13/2016

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Term
Inflation
Definition
Sustained increase of the general or average level of price.
Term
Consumer Price Index
Definition
An indicator of consumer price inflation and measures the changes in the price of G+S purchased by average Australian Households.
Term
Headline Inflation
Definition
Capture the price movements of all G+S contained in the CPI
Term
Underlying Inflation
Definition
Rate of inflation that provides the best of predominant price pressures in the economy, excluding volatile inflation.
Term
CPI Basket
Definition
Value of household G+S taking into account there inflationary impact.
Term
Consumer Confidence
Definition
Consumers general expectation of economic prosperity
Term
Business Confidence
Definition
Producers perception of future level of sales and profitability
Term
AD Formula
Definition
AD=C+I+G1+G2+(X-M)
Term
AS Formula
Definition
AS=Production Cost and Profitability+Quantity and Quality+Efficiency+Productivity
Term
Aggregate Demand
Definition
Total Expenditure on Australian Goods and services
Term
Aggregate Supply
Definition
Total volume of Goods and services that suppliers are willing to supply
Term
Economic Activity
Definition
volume of production, income, employment and expenditure in the economy
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