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Deflation is the decrease is the decrease in prices of goods and services. This can affect the economy of a whole region, country, and in some cases, the world. Some of the causes can be:
-Reduction in the supply of money or credit.
-Reduction in the demand of goods.
-Military waste.
-Increases in debt and credit card repayment means.
-Terrorism.
-Government growth, who takes money away from the market economy to fund inefficient programs.
-Regulations.
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What are the disadvantages of deflation?
Deflation is the fall of the general price market. The disadvantages of deflation are large levels of unemployment and an unstable economy.
In the absence of unexpected shocks does the economy tend to experience inflation or deflation?
inflation
Is the deflation good for the economy?
yes,deflation...in my own opinion is good to the country,but permit me to say the little i know about (inflation) and( deflation).inflation...means when there is excess of money circulating within a given country while deflation means when there is less money.......so deflation is good for a country in a way that,there will be no inappropraite in terms of goods and services,,
Why is deflation destructive to the nation's economy?
Not enough money is spent to keep business activity moving
Explain the difference between deflation and abrasion?
In economics, deflation is the decrease of the general level of prices in an economy. Abrasion on the other hand, is the process of wearing down or rubbing away through fiction.
What are the disadvantages of deflation?
Deflation is the fall of the general price market. The disadvantages of deflation are large levels of unemployment and an unstable economy.
In the absence of unexpected shocks does the economy tend to experience inflation or deflation?
inflation
Is the deflation good for the economy?
yes,deflation...in my own opinion is good to the country,but permit me to say the little i know about (inflation) and( deflation).inflation...means when there is excess of money circulating within a given country while deflation means when there is less money.......so deflation is good for a country in a way that,there will be no inappropraite in terms of goods and services,,
In a real economy which two factors can change the level of nominal GDP?
Inflation and Deflation
How can you use deflate in a sentence?
Deflation in economics is defined as the reduction of the general level of prices in an economy. A good sentence to use deflation in is: The current deflation occurring of the dollar is making this a buyers market, great for new investors.
Why is deflation destructive to the nation's economy?
Not enough money is spent to keep business activity moving
Is deflation of the money supply a good thing?
Deflation is a situation where the amount of the money supply is in a state of shrinking. It's a good thing if inflation is running high and out of control. In a normal economy, deflation means less money in circulation which causes the economy to suffer. Money is scarce and prices may be too high in relation to the money supply. This causes economic problems.
Explain the difference between deflation and abrasion?
In economics, deflation is the decrease of the general level of prices in an economy. Abrasion on the other hand, is the process of wearing down or rubbing away through fiction.
When will real GDP be higher than norminal GDP?
When there is a deflation in an economy (with the growth is still positive.) This is due to the fact that the value of money increase during a deflation (as opposed to inflation.) However, growth during this period is very difficult since deflation is characterized largely by deffered consumption and investments.
When will the real GDP be higher than norminal GDP?
When there is a deflation in an economy (with the growth is still positive.) This is due to the fact that the value of money increase during a deflation (as opposed to inflation.) However, growth during this period is very difficult since deflation is characterized largely by deffered consumption and investments.
What is the concept of currency control?
The concept of currency control is very essential for any economy. This is what will often regulate the rate of inflation and deflation.
Define deflation explain merits and demerits of deflation?
merits and demerits of deflation
