a) Inflation, deflation and disinflation
b) Interpret price indices (RPI and CPI) and the rate ofinflation
c) Real and nominal values, constant and current prices
d) Causes of inflation:
o demand pullo cost push
e) The impact of inflation on firms:
o uncertainty
o loss of international competitiveness
f) The impact of inflation on individuals:
o loss of real income
o savers and borrowers
