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If an investment grows slower than inflation, its real value decreases.

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15y ago

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What do you think about inflation?

Inflation is a complex economic phenomenon that reflects the general increase in prices and the decrease in purchasing power over time. While moderate inflation can indicate a growing economy, excessive inflation can erode savings and create uncertainty for consumers and businesses. It's crucial for policymakers to manage inflation effectively to maintain economic stability and protect individuals' financial well-being. Overall, understanding inflation's causes and effects is essential for making informed economic decisions.


When economy is moving in recession process demand is increasing supply is decreasing prices are increasing than what is that type of inflation?

I think you're referring to a so called Running Inflation. Check the link for more information.


If full employment GDP is greater than equililbrium GDP what problem is this economy facing?

I think it is inflation but I am not 100% sure on that.


What is the difference between expected inflation and inflation how does changing inflation expections affect short run philpse curve?

The first answer is self-explanatory. If consumers THINK a good will go up in price, then that good has a high expected inflation. Whether or not it actually does is it's actual inflation.This matters in the Phillips Curve mainly when dealing with businesses. Basically, if a business thinks it's costs are going to increase (inflation), it might not hire more people or might even lay people off to save money. Thus, as expected inflation rises, unemployment rises, just like the Curve says it would.


What are the economic environment factors affecting pricing?

I think supply and demand, and maybe inflation. If anyone thinks there's a better answer, please edit

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What do you think happens to a fish's behavior in cold climate during the winter?

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Importance of panic of 1837?

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What do you think about inflation?

Inflation is a complex economic phenomenon that reflects the general increase in prices and the decrease in purchasing power over time. While moderate inflation can indicate a growing economy, excessive inflation can erode savings and create uncertainty for consumers and businesses. It's crucial for policymakers to manage inflation effectively to maintain economic stability and protect individuals' financial well-being. Overall, understanding inflation's causes and effects is essential for making informed economic decisions.