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

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

Deflation leads to decreased consumer spending due to anticipated lower prices

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 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 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 the Phillips curve shows — inverse relationship between unemployment and inflation

The Phillips curve illustrates the inverse relationship between unemployment and inflation rates

What supply and demand equilibrium is — the price where quantity supplied equals quantity demanded

Price at which market clears, Qs = Qd