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Why will producers and suppliers have a surplus of goods during a time of deflation?
Wiki User
∙ 9y ago
Because consumers have too little money.
This causes a knock down effect as the food will ultimately spoil if not consumed and if the food is simply "dumped" on the market to get rid of it this will drive the prices even lower.
Wiki User
∙ 9y ago
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Do interest rates rise during deflation?
yes they do rise during deflation
What happens to gold and silver prices during deflation?
During periods of deflation, all asset classes are sold and decline in value. However, Gold statistically does not correlate with either inflation or deflation. The related link investigates the issue in more depth.
What are the reasons for deflation?
Economics: During Deflation the price of goods and commodities goes down. A Deflation is the situation exactly opposite to inflation. Usually during a deflation there is a significant shortage of money and credit. You can find instances of Deflation in the world history during Wars... Geology: The lifting and removal of loose material by wind. (In the desert, resulting in desert pavement)
A recession is best defined as a period during which?
consecutive periods of deflation
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.
Do interest rates rise during deflation?
yes they do rise during deflation
An economic indicator which declined during the war?
deflation
What happens to gold and silver prices during deflation?
During periods of deflation, all asset classes are sold and decline in value. However, Gold statistically does not correlate with either inflation or deflation. The related link investigates the issue in more depth.
What are the reasons for deflation?
Economics: During Deflation the price of goods and commodities goes down. A Deflation is the situation exactly opposite to inflation. Usually during a deflation there is a significant shortage of money and credit. You can find instances of Deflation in the world history during Wars... Geology: The lifting and removal of loose material by wind. (In the desert, resulting in desert pavement)
A recession is best defined as a period during which?
consecutive periods of deflation
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 are facts about deflation during the late 19th century?
It was caused by a scarcity of gold
Which of these conditions must have existed during the second four-year period?
Deflation
What occured during the decline of prices due to insufficient money supply?
deflation
Which of these occurs during the decline of prices due to insufficient money supply?
deflation
During a period of deflation the graph of the consumer price index CPI will fall?
false
