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As the inflation is rising so the people would not be able to spend their money on other goods other than food. So in this way the demand for other goods other than food would fall and ultimately the profit as well as revenue of all the sectors would fall due to which all private companies would start cutting their work force and thus unemployment would rise and it ultimately affects our country GDP which is used to measure Economic growth of a country.

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What are the implications of rising inflation to an economy?

No economic growth or development, foreign exchange reserve and impact on the monetary policy.


Which economic term describes a period of slow economic growth that also has inflation?

Recession


Which term describes the economic status when wages are falling while prices are rising?

The term that describes the economic status when wages are falling while prices are rising is "stagflation." This condition combines stagnation in economic growth with inflation, leading to decreased purchasing power for consumers. It poses significant challenges for policymakers as traditional measures to combat inflation can exacerbate unemployment, and vice versa.


How do research papers on the impact of inflation affect economic growth?

Research papers on the impact of inflation can influence economic growth by providing insights into how inflation rates affect various aspects of the economy, such as consumer spending, investment decisions, and overall economic stability. Policymakers and businesses can use this information to make informed decisions that can help mitigate the negative effects of inflation on economic growth.


What is the definition of economic inflation?

Economic inflation or just inflation is the rate at which the general level of prices for goods and services is rising. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. Inflation or deflation will always occur in a economy but the role of the Fed is to make less severe.

Related Questions

What are the implications of rising inflation to an economy?

No economic growth or development, foreign exchange reserve and impact on the monetary policy.


Which economic term describes a period of slow economic growth that also has inflation?

Recession


How do research papers on the impact of inflation affect economic growth?

Research papers on the impact of inflation can influence economic growth by providing insights into how inflation rates affect various aspects of the economy, such as consumer spending, investment decisions, and overall economic stability. Policymakers and businesses can use this information to make informed decisions that can help mitigate the negative effects of inflation on economic growth.


Can to much economic growth lead to inflation?

No. They are not functions of one another.


What is the definition of economic inflation?

Economic inflation or just inflation is the rate at which the general level of prices for goods and services is rising. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. Inflation or deflation will always occur in a economy but the role of the Fed is to make less severe.


What indicators does not measure economic growth?

Economic growth can be measured in nominal terms, which include inflation. The growth of an economy is thought of not only as an increase in productive.


What is a period of rising economic growth and increasing employment.?

Recovery


How does mild inflation stimulate economic growth?

gives money to governmant to use


What does the term Stagflation referred to?

a period of high inflation and slow economic growth


What did Kennedy to to help curtail rising unemployment and inflation and stimulate economic growth?

Asked businesses to limit prices and workers to accept fewer pay raises.


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.


Factors responsible for inflation?

Inflation can be caused by factors such as excess demand, cost-push inflation from rising production costs, excessive money supply growth, and external shocks such as oil price increases. These factors can lead to an increase in overall prices of goods and services in the economy.