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Measurement of inflation and deflation using the
Consumer Prices Index (CPI).

  • Causes of inflation: demand-pull and cost-push.

  • Causes of deflation: demand-side and supply-side.

  • The consequences of inflation and deflation for
    consumers, workers, savers, lenders, firms and the
    economy as a whole.

  • The range of policies available to control inflation and
    deflation and how effective they might be.

Review of Unit 4

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