Inflation & DeflationAnswer all the questions below

1. Define Inflation2. Define Deflation3. How does the UK measure inflation4. Explain why goods within the basket of goods are given a weight5. Define cost push inflation6. Define demand pull inflation 7. What are the other methods which can be used to calculate the rate

of inflation?8. Explain the term:

a. Shoe leather costsb. Menu costs

9. Plot the following on a graph

Year Inflation (%)1970 6.51971 9.21972 7.51973 9.11974 17.51975 29.81976 18.21977 8.31978 4.2

10. Comment on the trend in inflation