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inflation means the price level is very high in the society. more money chasing few goods that s called inflation .

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14y ago

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Providing automatic increases to compensate for inflation is known as?

inflation


What is the conclusion of inflation?

As prices rise, inflation also increases; supply increases and demands of people decrease because of high prices.


What is fuel inflation?

It is where the cost of fuel increases


If expected inflation increases interest rates are likely to increase?

Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates


Inflation initiated by increases in wages or other resource prices is labeled?

cost push inflation


When inflation increases interest rates go .?

duck it


A dramatic rise in prices is called?

I believe that this is called high inflation or hyperinflation. Hope this helps.


What is the range of hyper inflation?

Hyperinflation is an extremely rapid or out of control inflation and there is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.


Is it correct to state that when inflation increases unemployment decreases?

Yes, they are negatively correlated.


Why do bond prices fall when inflation increases?

Bond prices fall when inflation increases because higher inflation erodes the purchasing power of the fixed interest payments that bonds provide. Investors demand higher yields on bonds to compensate for the loss in purchasing power, causing bond prices to decrease.


What happens to the future value of money when the inflation rate exceeds the interest rate?

it increases


Describe and give reasons for the relationship that exists between RGDP inflation and umeployment?

It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve