Explain inflation. Is zero inflation good target?

Week 12: Interactive activity

6.1 Learning Outcomes:

  • Recognize fiscal policy as an important tool of government intervention in a market economy.
  • Recognize monetary policy as an important tool of government intervention in a market economy.
  • Evaluate effects of changes in a tax policy.

6.2 Action Required:

Watch the video using the following link:

(908) Introduction to inflation | Inflation – measuring the cost of living | Macroeconomics | Khan Academy – YouTube

6.3 Test your Knowledge (Question):

 Explain inflation. Is zero inflation good target?

6.4 Instructions