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The dollar in your pocket is worth .99 of a dollar.
also
nominal interest=real interest+inflation
so nominal interest goes up by 1%
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∙ 12y ago
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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.
Is it true that the occurrence of inflation and high unemployement at the same time is called crowding in?
False, crowding in occurs when decreases in government spending lead to an increase in private spending.Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.
Is it true during a recession demand for goods increases and employment rises?
Just the opposite happens. In a recession, unemployment increases and the demand for goods decreases.
How does inflation affect GDP?
Inflation is the primary and negative factor of all economic troubles including GDP,because it lowers consumerism, promote unemployment, and reduce import and export.-- Not quite. Inflation itself isn't necessarily a bad thing, and in fact deflation (negative price growth) can adversely affect the economy is well. High inflation can certainly hurt spending and employment, but inflation is just a term used for the growth rate of prices, which happens naturally as economies expand. The US Federal Reserve targets an inflation rate of 2-3% as a goal. Inflation has historically been a major concern in some of the developing world especially, and source of economic (and political) instability. (Source: Economics PhD student who just finished grading a paper that cited the above answer)
What is todays inflation rate?
In some countries the current inflation rate is over 100%, in other countries the current inflation rate is just over 3%.
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.
Is it true that the occurrence of inflation and high unemployement at the same time is called crowding in?
False, crowding in occurs when decreases in government spending lead to an increase in private spending.Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.
How do you spell rises?
The word is spelled rises, just as you spelled it
Is it true during a recession demand for goods increases and employment rises?
Just the opposite happens. In a recession, unemployment increases and the demand for goods decreases.
What happens to the balloon as it rises?
Baloon filled with hydrogen gas float in air or rises if the quntity of gas it contain is adjusted so that the average density of the balloon is just eguall to the density of the surrounding air.The weight of the displaces air is then eguall to the weight of the balloon
What happens to glass after it is recycled?
according to an article i just read only about 24 percent of glass is recycled, it is remelted and the savings are about 20 percent from making new glass.
How does inflation affect GDP?
Inflation is the primary and negative factor of all economic troubles including GDP,because it lowers consumerism, promote unemployment, and reduce import and export.-- Not quite. Inflation itself isn't necessarily a bad thing, and in fact deflation (negative price growth) can adversely affect the economy is well. High inflation can certainly hurt spending and employment, but inflation is just a term used for the growth rate of prices, which happens naturally as economies expand. The US Federal Reserve targets an inflation rate of 2-3% as a goal. Inflation has historically been a major concern in some of the developing world especially, and source of economic (and political) instability. (Source: Economics PhD student who just finished grading a paper that cited the above answer)
What is todays inflation rate?
In some countries the current inflation rate is over 100%, in other countries the current inflation rate is just over 3%.
Was the ATM the answer to inflation?
No. The ATM does not in any way affect or answer inflation. It is just a machine through with customers can do banking transactions without visiting their bank. It does not cause or affect inflation. Only the country's central bank can control inflation by changing regulatory policies.
When you just for inflation which is worth more?
Because inflation is the decrease in the value of a dollar over time, the "older" dollar is always worth more.
What is the term for creating matter?
Creationism.... Inflation,just after the big bang
What is the current US inflation rate?
5.35%. I just looked it up.
