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Is the cost of rising resources causing the cost of finished products to push upward is one cause of inflation?
Wiki User
∙ 11y ago
it is true
Wiki User
∙ 11y ago
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What is a difference between macro economics amd micro economics with respect to inflation?
Macro economics is the study of an economy and how it functions. Inflation in a macro sense reduces the value of money (and hence all debt and savings) and can cause a country to be less pricecompetitive if it's persistent. It also nullifies the market mechanism that allows people to know a good price off the top of their heads. Micro economics is the study of markets. Inflation isn't a micro concept, but with high inflation in certain markets firms can seek alternatives to the material causing the inflation causing dynamic efficiency (where a firm innovates and benefit the consumer). Inflation also reduces information in a micro economy. As said before people don't intuitively know a good price when an economy is in high inflation meaning that more expensive products can often break into the market.
How does inflation affect business?
It affects your business because your products prices increase and so do the wages of any employees you have. If the inflation rates are 4% then that means in one year £100 will drop in value by 4%, so it will only be worth £96. Effectively, the business must then raise wages to cover this expense.
Why are high inflation rate bad for the economy?
Because high inflation cause costs to rise extremly fast causing most of the population to lose out as less can be bought with the same amount of money. Read on the web about Zimbabwe and the effects it has had on the society as a whole
How can the price of raw materials affect inflation?
As prices of raw materials goes up, prices would go up, causing the currency to buy less.
How can the government prevent increase in interest rates?
The most efficient way is to get a hold on the inflation rate (without causing deflation) by influencing growth labour costs.
What is a difference between macro economics amd micro economics with respect to inflation?
Macro economics is the study of an economy and how it functions. Inflation in a macro sense reduces the value of money (and hence all debt and savings) and can cause a country to be less pricecompetitive if it's persistent. It also nullifies the market mechanism that allows people to know a good price off the top of their heads. Micro economics is the study of markets. Inflation isn't a micro concept, but with high inflation in certain markets firms can seek alternatives to the material causing the inflation causing dynamic efficiency (where a firm innovates and benefit the consumer). Inflation also reduces information in a micro economy. As said before people don't intuitively know a good price when an economy is in high inflation meaning that more expensive products can often break into the market.
What are two particular products that are at higher risk of causing cognitive dissonance Why?
Name at least two particular products or services that are at higher risk of causing cognitive dissonance. Why?
How does inflation affect business?
It affects your business because your products prices increase and so do the wages of any employees you have. If the inflation rates are 4% then that means in one year £100 will drop in value by 4%, so it will only be worth £96. Effectively, the business must then raise wages to cover this expense.
How do humans effect resources?
We are causing global warming which is melting the ice.
What role did they struggle for resources play in causing war in the pacific?
As a father figure.
How do humans effect Greenland's resources?
We are causing global warming which is melting the ice.
What was Hittler's reason for causing world war 2?
racism, resources, and revenge
Why are high inflation rate bad for the economy?
Because high inflation cause costs to rise extremly fast causing most of the population to lose out as less can be bought with the same amount of money. Read on the web about Zimbabwe and the effects it has had on the society as a whole
How can the government prevent increase in interest rates?
The most efficient way is to get a hold on the inflation rate (without causing deflation) by influencing growth labour costs.
How can the price of raw materials affect inflation?
As prices of raw materials goes up, prices would go up, causing the currency to buy less.
What causes the white little dots on your forehead and how can it be naturally prevented?
It could be your hair products or your facial cleaning products causing white heads.
Did the articles of confederation give the states to much power?
Yes. It even went to the extent to where each state could print its own currency causing minor inflation.
