3
Chapter 7
Inflation
Key terms – matching and translation.
Read aloud the key term and its definition so that they make up a
single sentence. (Remember about the agreement between the subject
and the predicate!). Translate the sentences you have arrived at from
English into Russian.
Set 1
“deflating” nominal
values
|
Cost of upward revisions of price schedules.
|
demand-pull inflation
|
Rising
demand in one sector causes price hikes; falling
demand in another causes layoffs.
|
discomfort (misery) index
|
An upward movement in general prices.
|
inflation
|
Adjusting
for price level changes by dividing monetary variables by (1% of)
a price index.
|
real values
|
Occurs,
e.g., if costly resources are increasingly wasted and misused by
incompetent managers.
|
cost-push inflation.
|
Low
levels of persistent price hikes.
|
hyperinflation
|
The sum of the rates of inflation and
unemployment.
|
menu costs of inflation.
|
Variables measured by money but adjusted for
price
level changes.
|
composition-shift inflation
|
Arises, e.g., if the money supply grows too
rapidly.
|
creeping inflation
|
Experienced
in Germany after World War I.
|
Set 2
1
deflation
|
Measures
changes in wholesale prices.
|
2
supply side inflation
|
Wage hikes are used as an excuse to raise prices by huge firms.
|
3
administered price
inflation
|
It
is common for people to hedge when guarding against this type of
inflation.
|
4
expectational
inflation
|
Double-digit
annual rates of inflation.
|
5
galloping
inflation
|
A
decline in the general price level.
|
6
anticipated
inflation
|
Measures
average prices by comparing the costs of consumer market baskets
overtime.
|
7
Consumer
Price Index
(CPI)
|
Speeded by peoples' concerns and beliefs about future inflation.
|
8
distortion
costs of
inflation
|
Current dollar values of economic variables.
|
Producers Price Index
(PPI)
|
Caused by a leftward shift of the Aggregate Supply curve.
|
10
nominal
values
|
Arise, in part, because inflated prices rise
at different
rates.
|
Text translation.
Translate the text from English into Russian in
writing paying particular attention to the translation of the
economic terms in bold
as well as words and phrases relevant to the subject of the text.
Read out your translation in class and
introduce the necessary
corrections.
