Term
| consumer price index (CPI) |
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Definition
| for any period, measures the cost in that period of a standard basket of goods and services relative to the cost of the same basket of goods and services in a fixed year, called the base year |
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Term
| deflating (a normal quantity) |
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Definition
| the process of dividing a normal quantity by a price index (such as the CPI) to express the quantity in real terms |
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Term
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Definition
| a situation in which the prices of most goods and services are falling over time so that inflation is negative |
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Term
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Definition
| the tendency for normal interest rates to be high when inflation is high and low when inflation is low |
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Term
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Definition
| a situation in which in the inflation rate is extremely high |
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Term
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Definition
| the practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index |
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Term
| inflation-protected bonds |
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Definition
| a financial assets that pays the holder a nominal interest rate equal to the fixed real interest rate plus the actual rate of inflation each year |
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Term
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Definition
| the annual percentage increase in the nominal value of a financial asset |
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Term
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Definition
| a quantity that is measured in terms of its current dollar value |
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Term
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Definition
| a measure of the average price of a given class of goods and services relative to the price of the same goods and services in a base year |
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Term
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Definition
| a measure of the overall level of prices at a particular point in time as measured by a price index such as the CPI |
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Term
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Definition
| the annual percentage rate of change in the price level, as measured, for example by the CPI |
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Term
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Definition
| the annual percentage increase in the purchasing power of the financial asset |
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Term
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Definition
| a quantity that is measured in physical terms - for example, in terms of quantities of goods and services |
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Term
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Definition
| the wage paid to workers measured in terms of real purchasing power |
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Term
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Definition
| the price of a specific goods and services in comparison to the prices of other goods and services |
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