Inflation in the U.S. economy tends to be:
Question 8 options:a)a finite, one-time event resulting from a shock.
b)ongoing, as increases in aggregate demand outpace increases in aggregate supply.
c)a finite, one-time event as the Fed actively works to eliminate all inflation.
d)ongoing, as aggregate supply is continually shifting to the left.
natural inflation
on increasing inflation economy growth decreases
Zero inflation is where the economy reach a state of 0% inflation rate. This is not really good in the sense that it shows the economy is stagnant/not growing. This may turn away the investors. Mild inflation is basically low rate of inflation around 2% to 3%. Mild inflation shows that an economy is stable and indicates economic growth.
Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
natural inflation
inflation
on increasing inflation economy growth decreases
HIstorical cost based depreciation tends to increase profits when there is inflation
Zero inflation is where the economy reach a state of 0% inflation rate. This is not really good in the sense that it shows the economy is stagnant/not growing. This may turn away the investors. Mild inflation is basically low rate of inflation around 2% to 3%. Mild inflation shows that an economy is stable and indicates economic growth.
Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
inflation
This is called inflation or more precisely "price inflation".
quantity theory: Theory that too much money in the economy causes inflation.
Inflation of goods and services occurs when the economy grows.
During the Ford administration, inflation was seen as a looming financial problem to the US economy. A program was started to Whip Inflation Now- had popular buttons, but not much else.