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Devation: Prices are decling Inflation : rise in products, good, services Producer Price Indexs helps gauge the health of economy (miasument of 143 holesale) HyperInflation: Price of goods increase 50 percent a month Disinflation : price increase are showing Occurs when country produce so them many goods that people can't afford Stagflation: economy is slowing but price are increasing Consumer Price Index ( CPI ) : monthly stats that measure the pace of inflation I deflation Business Cycles: periodic rises and falls that occur over time Ruessionidwp or more consequtive quarters of Decline in GDP Deppression: severe recession accompidied by deflation Pecovery occurs when cuomonie stabilizesStabalizing Ecomy by Fiscal Policy Flocal Policy : Pedral gov't to keep economy by increase or decreasing taxes of gov't spending Keynesian Therey. gor't policy of Increasing spending and cutting taxes could stimulate economy becession. Irst Fisical Policy: Is taxation, high tax rates slows economy, while low taxes gives economy a boost and Policy . gov't spending on highways social programs, education. Can increase national deficit. national Deficit: what gort spends beyond what is collected in taxes for given fiscal year national Debt: Sum of national Deficit over time