Money and Inflation

2. Happens when production costs increase, causing businesses to raise prices to maintain profitability.
5. Can be easily carried and transferred from one person to another, making transactions convenient.
8. Can be broken down into smaller units, allowing for transactions of various values.
10. Occurs when overall demand in an economy exceeds supply, leading to rising prices.
11. When the money supply increases too quickly, leading to inflation as more money chases the same amount of goods and services.

1. Able to withstand wear and tear over time, ensuring it remains useful as a form of money.
3. Used to facilitate transactions between buyers and sellers, replacing barter systems.
4. Serves as a standard for comparing the worth of goods and services.
6. The availability is controlled to maintain its value and prevent excessive circulation.
7. Retains its worth over time, allowing individuals to save purchasing power for future use.
9. A cycle where rising wages lead to higher production costs, which in turn cause prices to rise, leading to further wage increases.