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How does a rise in the general price level different from the increase in the price of one good?
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What is the relation between Public borrowing and price level?
if the increase the public borrowing increase the price level of economy.
What is a general price increase?
A "general price increase" is the term commonly used to describe an increase in price levels across a broad spectrum of goods and services rather than, say, an increase in just oil prices, perhaps due to a "one time" event like a hurricane in a refinery area, or a war in the Middle East.
Why is inflation not considered when the basic concept that money has time value is discussed?
Inflation is not considered when the basic concept of money has time value because it is a sustained increase in the general price level of goods and services in an economy over a period of time. If the general price level rises, each unit of currency buys fewer goods and services.
A general rise in the price level of goods is called?
inflation
What is the difference between price level and the rate of inflation in an economy?
The price level is a measure of the average price in an economy and is measured at a point in time.. The rate of inflation is the rate of change of the price level over time. Strictly speaking, economists define inflation as a continued increase in the price level as opposed to a one time price level adjustment.
What is the relation between Public borrowing and price level?
if the increase the public borrowing increase the price level of economy.
An increase in the aggregate price level will increase?
a clause in a contarct that automatically increases wages to account for increases in the price level
What is the purpose of central bank act?
Inflation is the constant rise in the general price level. Inflation is the constant rise in the general price level.
What would happen to the price level if AD decreased?
If AD increased, all else being equal, the price level would increase.
Why is inflation not considered when the basic concept that money has time value is discussed?
Inflation is not considered when the basic concept of money has time value because it is a sustained increase in the general price level of goods and services in an economy over a period of time. If the general price level rises, each unit of currency buys fewer goods and services.
What is a general price increase?
A "general price increase" is the term commonly used to describe an increase in price levels across a broad spectrum of goods and services rather than, say, an increase in just oil prices, perhaps due to a "one time" event like a hurricane in a refinery area, or a war in the Middle East.
A general rise in the price level of goods is called?
inflation
What is the difference between price level and the rate of inflation in an economy?
The price level is a measure of the average price in an economy and is measured at a point in time.. The rate of inflation is the rate of change of the price level over time. Strictly speaking, economists define inflation as a continued increase in the price level as opposed to a one time price level adjustment.
Will increase in nominal money supply increase real money supply?
No because real money supply would only increase if the price level doesnt increase or increases at a slower pace than the increase in nominal money supply. This is because the real money supply takes into account the current price level.
If both aggregate output and the aggregate price level increase what will happen?
a decrease in need which will in turn surplus the output and decrease the price level. then output will decrease.
Concern about the general level of prices in an economy is primarily a concern about the economic goal of?
Price level stability.
When will the quantity of money available increases?
for money to be in the Market, there must be money equilibrium. i.e quantity of money supplied must be equal to quantity of money demanded. in a situation whereby quantity of money supply increases, without a corresponding increase in quantity demanded, there will be inflation in the Economy. inflation can occure in two different perspectives; either by increase in the general price level or increase in money supply without a corresponding increase in money demand.
