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What Are the Elements of the Decision Making Process

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What are the elements of the decision making process?


Definitions:

Indexed for Inflation

A mechanism to adjust income payments or prices by taking into account the rate of inflation to preserve purchasing power.

Price Level

An index that measures the average of the prices of goods and services in an economy, indicating the cost of living or inflation.

Purchasing Power

The value of currency expressed in terms of the amount of goods or services that one unit of money can buy.

Deflation

A decrease in the general price level of goods and services, often associated with a reduction in the supply of money or credit.

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