Analyse inflation using economic concepts and models

Achievement Criteria

• identifying, defining or describing inflation concepts
• providing an explanation of causes of changes in inflation using economic models
• providing an explanation of the impacts of changes in inflation on various groups in New Zealand society.

Analyse inflation in depth involves:

• providing a detailed explanation of causes of changes in inflation using economic models
• providing a detailed explanation of the impacts of changes in inflation on various groups in New Zealand society.

Analyse inflation comprehensively involves:

• analysis of causes of changes in inflation by comparing and/or contrasting their impact on inflation
• analysis of the impacts of changes in inflation by comparing and/or contrasting the impact on various groups in New Zealand society
• analysis by integrating changes shown on economic models into detailed explanations.
• Inflation refers to the issues associated with changes in the general level of prices.
• Economic concepts are selected from:
• inflation, disinflation, deflation
• business cycle
• cost-push and demand-pull inflation
• real versus nominal indicators.
• Models are selected from:
• the quantity theory of money
• the Aggregate Supply and Aggregate Demand (AS/AD) model (an understanding of how to derive the AS and AD curves is not required).