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The term inflation has a few different but related meanings. If you blow air into a balloon you are inflating it, making it expand. That is a kind of inflation. The term is also used in economics to describe a general increase in prices and wages, which is equivalent to a decrease in the value of a unit of currency (such as a dollar). Prices get larger, so they are said to be inflating. If they get lower, that can be called deflation.
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Why would an expansionary gap lead to a change in inflation Why would a recessionary gap lead to a change in inflation?
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
What does the term reformation mean?
reformation is a reflecting term of reforming
What was the inflation rate after the great depression?
We were on the gold standard then. No fiat currencyhttp://inflationdata.com/inflation/images/charts/Annual_Inflation/inflation_Cumulative.htmI don't think there was much inflation after the depression. During the depression there was deflation. The economy recovered slowly so there was no spike in inflation.
What was inflation back in the 1900s?
Inflation was the same thing back then as it is now. Inflation rates were and are different in different countries, so the amount of inflation in each country is always different, depending on the solidity of the local currency. In Britain the inflation rate in 1900 was 4.5%. In the USA it was 16.9% but then fell to -2.4 the next year. Inflation rates in the US changed greatly from year to year and were often double-digit (but sometimes that was double-digit deflation)
What does the term engrossed mean in the declaration of independence?
,
What economic term refers to a general rise in prices?
apajedico
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
Is inflation going on or recession?
Both inflation and recession are occurring. A special term was coined for that. It is stagflation.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
What are some long term remedies to cure inflation?
long-term productivity...
If inflation falls why would unemployment rise?
When economists look at inflation and unemployment in the short term, they see a rough inverse correlation between the two. When unemployment is high, inflation is low and when inflation is high, unemployment is low. This has presented a problem to regulators who want to limit both. This relationship between inflation and unemployment is the Phillips curve. The short term Phillips curve is a declining one. Fig 2.4.1-Short term Phillips curveThis is a rough estimation of a short-term Phillips curve. As you can see, inflation is inversely related to unemployment. The long-term Phillips curve, however, is different. Economists have noted that in the long run, there seems to be no correlation between inflation and unemployment.
What is menu cost in term of inflation?
Menu cost is a cost of inflation. The term came from the menu of restaurants which has to be reprinted very frequently because of the changes in the menu prices.
What is the percent of compound inflation on a long term care policy?
The percent of compound inflation of a long term care insurance policy depends on the choice of the policyholder, you may either choose 3%, 4% or 5% compound inflation rate. A compound inflation rate adds more money to your benefits compared to a simple inflation rate.
Economic term refers to a general rise in prices?
inflation
What is the symbol for Vanguard Short-Term Inflation-Protected Securities Index Fund in NASDAQ?
The symbol for Vanguard Short-Term Inflation-Protected Securities Index Fund in NASDAQ is: VTIP.
Inflation distorts relative prices. What does this mean and why does it impose cost to consumers?
Inflation distorts relative prices. What does this mean and why does it impose a cost on society?
What term defines a time when there is an increase in money and a decrease in goods?
inflation
