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What else can I help you with?
What is a rapid increase in the price of goods caused by printing too much money?
Inflation.
What will a drop in price most likely have?
An effect that droppped prices are the inflation rate will drop,and interest rates too.
What is inflation and what can the government do about it?
Inflation is both good and bad for a couple of reasons. Inflation means the economy is growing strong and prices are going up. Too much inflation has a bad effect on people who are struggling to have their paychecks meet the growing prices
What effect will a drop in price most likely have?
An effect that droppped prices are the inflation rate will drop,and interest rates too.
What happens to the equilibrium price when the overall price level falls?
When the overall price level falls, the equilibrium price will usually fall, too.
What do you think is the cause of inflation?
Inflation has two basic causes. They usually go hand in hand but they will be explained separately. 1. Too much money in the economy (I know this sounds funny, bear with me). This is the supply side of inflation (so too much supply, the price goes down). Having too much money in the economy causes money to be "cheap", so the value of the dollar falls. This can happen from having interest rates be too low, the government printing too much money, etc etc. 2. Too much demand for goods (could theoretically be taken as a decrease in demand for the dollar, but that is a little more theoretical). This causes the price of goods to rise. This means that a dollar will purchase less goods, making the dollar worth less.
What is most likely to lead to an increase in the underlying rate of inflation?
Inflation at its core is a monetary problem. It is simply too much money chasing too few goods. The father of this theory is Milton Friedman (see link below).Rapidly rising production costs
What is the meaning of one who climbs too high receives the hardest fall?
it means you should not be too greedy
How may high demand and limited supply of products cause inflation?
because when the demand increase the price increase to.and customers have no choice since they used to consume the same product for too long.
The idea that too much money in the economy causes inflation?
quantity theory: Theory that too much money in the economy causes inflation.
How is inflation caused?
we get two types of inflation demand-pull inflation, this inflation is happened from demand increase, the demand increase, the price gonna increase too. the cpi ( inflation ) index also increase. another type is cost-push inflation, this type is from cost increase. the wage rate and the price of raw materials increase, the cost of goods and service going up, and the price of goods and services also going up. that's the reason why inflation happened. hope this can help you
With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals?
im not too sure if im correct but injections exceeding withdrawals mean inflation increases as theres TOO MANY PEOPLE AND MONEY CHASING TOO FEW GOODS....this means that producers will increase the price of the good so that they will be able to bring demand to an equilibrium point... because inflation has increased the monetary committee will increase interest rates thus causing unemployment to increase as producers will not be able to pay wages ......... or something like that ONCE AGAIN IM NOT COMPLETELY SURE IF IM RITE
