| A | B |
|---|
| inflation | prolonged rise in the general price level of goods and services |
| purchasing power | the real goods and services that money can by; determines the value of money |
| deflation | prolonged decline in the general price level of goods and services |
| consumer price index (CPI) | measure of the change in price over time of a specific group of goods and services used by the average household |
| market basket | representative group of goods and services used to compile the consumer price index |
| base year | year used as a point of comparison for other years in a series of statistics |
| producer price index (PPI) | measures the change in price over time that United States producers charge for their goods and services |
| GDP Price deflator | price index that removes the effect of inflation from GDP so that the overall economy in one year can be compared to another year |
| real GDP | GDP that has been adjusted for inflation by applying the price deflator |
