What deflation causes — falling prices discourage spending as consumers wait for cheaper goods

What raising interest rates does — makes borrowing more expensive, slows spending and inflation

Raising interest rates makes borrowing more expensive, slows spending, and reduces inflation

What hyperinflation looks like — prices doubling every few days, as in Zimbabwe or Weimar Germany

Hyperinflation: Rapid price increases, e.g., Zimbabwe's or Weimar Germany's

What purchasing power parity (PPP) adjusts for — different price levels across countries

PPP adjusts for variations in the cost of living and inflation rates between countries

What stagflation is and why Keynesian economics struggled to explain it

Stagflation: simultaneous high inflation and stagnant growth, challenging Keynesian focus on demand management

What a Giffen good is — a good where demand increases as price increases (very rare)

Giffen good: Increased price leads to higher demand due to inferior necessity

What Keynes argued about government spending during recessions

Keynes argued for increased government spending to stimulate demand during recessions