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During times of high inflation, it is best to regulate the price increase of the retailers. Policies should include price regulation, and consumer control.
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What is lost during a period of inflation?
Dignity
What may inflation be defined as?
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.(In practice, the term monetary inflation is used to specifically refer to an increase in the money supply.)
During which of these time periods was there a period of inflation?
1982 to 1984
What best describes a period of inflation?
Characteristics of inflation are: Inflation involves a process of the persistent rise in prices. It involves rising trend in price level. Inflation is a state of disequilibrium. Inflation is scarcity oriented. Inflation is dynamic in nature. Inflationary price rise is persistent and irreversible. Inflation is caused by excess demand in relation to supply of all types of goods and services. Inflation is a purely monetary phenomenon. Inflation is a post full employment phenomenon. Inflation is a long-term process
During a period of inflation the graph of the cpi will fall?
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
What is monetary gain?
The gain in purchasing power that is derived from holding monetary assets and/or monetary liabilities during a period of changing prices. An increase in prices tends to devalue monetary assets and monetary liabilities. Thus, if a firm's monetary liabilities exceeded its monetary assets, inflation would tend to produce monetary gains.
What is lost during a period of inflation?
Dignity
What may inflation be defined as?
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.(In practice, the term monetary inflation is used to specifically refer to an increase in the money supply.)
During which of these time periods was there a period of inflation?
1982 to 1984
During inflation period tax rates should be increased or decreased?
increased
What best describes a period of inflation?
Characteristics of inflation are: Inflation involves a process of the persistent rise in prices. It involves rising trend in price level. Inflation is a state of disequilibrium. Inflation is scarcity oriented. Inflation is dynamic in nature. Inflationary price rise is persistent and irreversible. Inflation is caused by excess demand in relation to supply of all types of goods and services. Inflation is a purely monetary phenomenon. Inflation is a post full employment phenomenon. Inflation is a long-term process
A comprehensive measure of consumer discomfort during a period of rising inflation and high unemployment is?
misery index
During a period of inflation the graph of the cpi will fall?
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
Why there is need for public debt?
Need for public debt: During period of inflation and deflation it is a sound fiscal weapon.
How does inflation affect investment?
The inflation affects the investment indirectly when read with the return. Example if an investment provides a return of 6%, and the inflation during the same period is 5%, the investment in real terms increases only by 1% and not by 6%, as inflation eats away returns to the tune of 5%.
How can you have a negative real rate of return over the same period?
If the rate of inflation exceeds the nominal rate of return during the period in question, then the real rate of return can be negative.
Is construction equipment succumbing to inflation prices?
During a period of economic inflation, most everything is affected. According the sale of new and used construction equipment would slow due to the slowing of building projects.
