This latest edition has been updated with comprehensive new notes and activities, all presented in a clear and logical sequence. It is designed to assist students with understanding the economic concepts and models required to prepare for assessments. A range of summative review questions builds up the student s confidence for tackling the end of year examinations.

Contents

AS 91222: Analyse inflation using economic concepts and models (2.1)

1 Overview price stability

2 Price and the price level

3 Real values

4 Impacts of inflation/deflation

5 Aggregate demand

6 Aggregate supply

7 Economic activity

8 Demand-pull/cost-push inflation

9 The business cycle

10 Quantity Theory of Money

11 Review (Exam) questions