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When adjusting something (such as costs, budgets, profit, etc etc) for inflation, one has to multiply the figure by the infaltion for the period you are examining. For instance, if we are looking at profits from 1950 in today's dollars, you want to mulitply the profit in 1950 by the inflation factor (which will be very high) to get the figure in "today's dollars".
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Why is it important to adjust GDP for inflation?
Cg
Happens when prices rise quickly?
an inflation ;)
If aggregate demand rises what happens to real GDP what happens to the price level?
Inflation.
When you adjust for inflation which is worth more 1908 pennies 1960 1990 2006 0r 2007?
1908
What happens if rate of inflation is zero?
A 0% inflation rate means that money is not losing or gaining any buying power.
Why is it important to adjust GDP for inflation?
Cg
Do 529 College Savings plans adjust for inflation?
529 savings plans CAN adjust for inflation. This is usually based on the state your in and how large your savings plan is.
How did inflation affected the Roman Empire?
inflation happens when money loses its value and it affected the Roman Empire.
What are the inflation trends over the past fifty years?
B/c inflation happens
Happens when prices rise quickly?
an inflation ;)
What happens when too much money is in circulation?
Inflation happens. When the supply of money goes up. The value of money goes down. And prices go up. Inflation is not the same as rising prices. Inflation causes rising prices.
Happens when prices rise very quickly?
an inflation ;)
If aggregate demand rises what happens to real GDP what happens to the price level?
Inflation.
When you adjust for inflation which is worth more 1908 pennies 1960 1990 2006 0r 2007?
1908
What happens if rate of inflation is zero?
A 0% inflation rate means that money is not losing or gaining any buying power.
If there is not enough money in the circulation what happens to businesses?
It is called an inflation or recession.
What happens to the circulation of money during inflation?
prices go up
