[s] When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living. economy' s overall price level is rising. which to choose, and this in turn increases the cost of maintaining the 16) Economists use the term inflation to describe a situation in which the 17] When a new good is introduced, consumers have more variety from same level of economic well-being. [8] The real interest rate is the interest rate corrected for inflation. 9] Like physical capital, human capital is a produced factor of production.
