Causes and Consequences of Inflation, and Measures to Combat It (Grade 12 NSC Matric Economics): Flashcards

Measures inflation rate for the economy as a whole

More than 50% annually

Low growth, high unemployment, high inflation

Spending grows faster than production ability

Production costs rise, passed to consumers

About 50% of GVA at basic prices

Debtors (repay with lower purchasing power money)

Inflation pushes income into higher tax brackets

Bank rate used by SARB to control inflation

SARB applies pressure on financial institutions