0
What else can I help you with?
Disadvantages of economic growth?
there are much disadvantages of economic growth and we can't cover here so,inflation,intergovernmental destruction, traffic congestion and population increase.
What is the effect of inflation on GDP?
The increase in GDP over time has two components -- real growth in economic activity, and inflation. Inflation affects GDP because GDP is measured in dollars (or some other country's currency as appropriate), therefore dollar-inflation by itself would cause an apparent increase in GDP. Economists generally correct for inflation and discuss "real GDP" when talking about economic growth. Nominal GDP is the number we "see" and count every quarter, and it's then corrected for inflation to arrive at real GDP growth, which is then reported by the government. But nevertheless, inflation alone makes the nominal GDP grow even without real growth. I.e., if you were to pull out a news article reporting the GDP from 10 or 15 years ago, the stated number would be so much lower than now, that REAL economic growth cannot account for the increase between now and then. Much of the increase is due to inflation, because that report would be reporting the GDP then, based on that era's dollar-values. - by Spotty j from yahoo . I did not make this up. the credit for this goes to spotty j Your question needs elaboration because inflation does not necessarily affect GDP. Inflation is the measure of a sustained increase in prices over a long period of time. GDP is the amount of the market value of all final goods and services produced within a country in a given period of time: GDP = consumption + investment + government spending + (exports − imports). Attached is a link to the Federal Reserve Bank which illustrates in easy terms how inflation works in the overall economy. As Yahoo questions go, this is intense stuff! Maybe you should try People Magazine to pique your interests.
Is inflation always bad for economy?
Inflation is certainly not always bad for economy, in fact a moderate level of inflation matching to it's growth rate is good for the country. Moderate inflation suggest demand in the system while no inflation or deflation suggest demand collapse which is much more dangerous than Inflation. For Instance US inflation is 1.5 to 2% while it's growth is 2-3%. This equation is ok. A Country having an inflation equal to it's growth rate is not bad though it is always preffered to have lower inflation and high growth rate. But it is difficult to achieve on a continuous basis. Reserve banks all over the world prefer and try hard to have moderate inflation and would worry if there is a situation of deflation. But too high inflation will make the currency of the country very weak against the major global currencies and will bring the economy to it's knees, like what happened in case of Zimbabwe.
What happens when the fed follows an easy money policy?
When the Federal Reserve follows an easy money policy, it typically lowers interest rates and increases the money supply to stimulate economic growth. This encourages borrowing and spending by consumers and businesses, which can lead to increased investment and higher demand for goods and services. While this can boost economic activity, it may also lead to inflation if the economy overheats or if too much money chases too few goods. Additionally, prolonged easy money policies can create asset bubbles and financial instability.
What happens when central banks inject liquidity into the economy?
When central banks inject liquidity into the economy, they typically lower interest rates and increase the availability of credit, which encourages borrowing and spending by consumers and businesses. This can stimulate economic growth, as increased demand can lead to higher production and employment. However, if too much liquidity is injected over a sustained period, it can also lead to inflation, asset bubbles, and financial instability. Central banks must carefully balance these effects to support economic recovery while maintaining price stability.
Disadvantages of economic growth?
there are much disadvantages of economic growth and we can't cover here so,inflation,intergovernmental destruction, traffic congestion and population increase.
How does inflation change economic choices?
As inflation rises, the cost of items increases because the currency is not worth as much as it was before inflation. When prices rise, economic choices available to people become more limited.
What is most likely to happen if the Fed prints too much currency?
If the Fed prints too much currency, it can lead to inflation as the increased money supply reduces the value of the currency. This can result in rising prices for goods and services, decreased purchasing power, and economic instability.
What economic problem in the 1970s became much less significant during the Reagan years?
Inflation
What does the inflation rate of 1-5 signify and how does it differ from an inflation rate of 10?
An inflation rate of 1-5 signifies a moderate increase in the overall price level of goods and services in an economy. This level of inflation is generally considered manageable and can indicate a healthy economy. On the other hand, an inflation rate of 10 signifies a much higher and potentially problematic increase in prices. This level of inflation can lead to reduced purchasing power, higher costs of living, and economic instability.
How much currency can be printed in India?
No Limit..........but it will lead to Inflation,that will cause decrease in currency value
What are the two ways to measure economic growth Why is economic growth important What are the two sources of economic growth?
ways to measure economic growth:1 GDP- gross domestic product2 GNP- gross national productThese show how much money is flowing around the economyhope this helps
Much of the economic growth of Texas is based on which commodity?
Oil
What is the effect of inflation on GDP?
The increase in GDP over time has two components -- real growth in economic activity, and inflation. Inflation affects GDP because GDP is measured in dollars (or some other country's currency as appropriate), therefore dollar-inflation by itself would cause an apparent increase in GDP. Economists generally correct for inflation and discuss "real GDP" when talking about economic growth. Nominal GDP is the number we "see" and count every quarter, and it's then corrected for inflation to arrive at real GDP growth, which is then reported by the government. But nevertheless, inflation alone makes the nominal GDP grow even without real growth. I.e., if you were to pull out a news article reporting the GDP from 10 or 15 years ago, the stated number would be so much lower than now, that REAL economic growth cannot account for the increase between now and then. Much of the increase is due to inflation, because that report would be reporting the GDP then, based on that era's dollar-values. - by Spotty j from yahoo . I did not make this up. the credit for this goes to spotty j Your question needs elaboration because inflation does not necessarily affect GDP. Inflation is the measure of a sustained increase in prices over a long period of time. GDP is the amount of the market value of all final goods and services produced within a country in a given period of time: GDP = consumption + investment + government spending + (exports − imports). Attached is a link to the Federal Reserve Bank which illustrates in easy terms how inflation works in the overall economy. As Yahoo questions go, this is intense stuff! Maybe you should try People Magazine to pique your interests.
How much was 50.00 worth in 1828 compared with today.?
To determine the value of $50.00 in 1828 compared to today, we can use historical inflation data. In 1828, $50 would be equivalent to roughly $1,500 to $1,600 today, depending on the specific inflation rates used. This significant change reflects the long-term economic growth and inflation that has occurred over nearly two centuries. Therefore, $50 in 1828 had a much greater purchasing power than it does today.
Is inflation always bad for economy?
Inflation is certainly not always bad for economy, in fact a moderate level of inflation matching to it's growth rate is good for the country. Moderate inflation suggest demand in the system while no inflation or deflation suggest demand collapse which is much more dangerous than Inflation. For Instance US inflation is 1.5 to 2% while it's growth is 2-3%. This equation is ok. A Country having an inflation equal to it's growth rate is not bad though it is always preffered to have lower inflation and high growth rate. But it is difficult to achieve on a continuous basis. Reserve banks all over the world prefer and try hard to have moderate inflation and would worry if there is a situation of deflation. But too high inflation will make the currency of the country very weak against the major global currencies and will bring the economy to it's knees, like what happened in case of Zimbabwe.
When GDP growth is high are prices high?
There does not have to be any correlation between the two. High inflation, on the other hand, will decrease purchasing power if salaries don't go up as much as the inflation.
