A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

4,009 Questions
Investing and Financial Markets
Stock Market

Why stock market is good example for perfect competition?

The stock market is characterised by non-uniform commodities (shares in different companies) each with a monopoly supplier. If anything it's an example of monopolistic competition, not perfect competition.


What is the difference between labor and labor in economics?

none - labour is the British spelling of the American word, labor, as is harbour, rumour, neighbour, honour and colour.

Coins and Paper Money

How much was 5 dollars worth in 1865?

As of May 2014, $5 in 1865 was worth about $67. A dollar today would of been about $.08 in 1865.

Business & Finance

How do you make money by collapsing a currency?

There are a number of ways to make money if you know (or believe) a currency is going to depreciate significantly. One is to borrow a large sum of money in the currency before it depreciates (or collapses) and then sell it to anyone who will buy it at today's price. Once the currency collapses it will be cheap to buy it back and pay off your loan. This would be "short-selling" (or simply "shorting") the currency -- selling what you don't actually own.

If you are capable of collapsing a currency, then it would similarly be possible to make money off of your skills. However, intentionally manipulating a financial currency implicates a number of ethical and legal issues; you might be better off in a more traditional career.

Business & Finance
Acronyms & Abbreviations

Factors affecting Gross Domestic Product GDP?

GDP is comprised of consumption, investment, and government spending plus net exports (exports minus imports). It can be summed up by this equation:

GDP = C + I + G + (X - M)

Edit: In terms of what actually affects GDP, there are quite a few factors. Because GDP is the total output of an economy in a nation over a period of time (quarterly, annually), unemployment has a significant effect . A large portion of GDP is because of consumer spending. If there's high unemployment, people haven't the money to spend so GDP will reduce and economic growth will be stifled. There's also poverty, import/export, government spending etc.


Why is hidden inflation a problem?

It is a huge problem. Something like this happens when the asking price does not decrease but the quality does.

That however is one way of looking at it. Hidden inflation can manifest itself in many ways, another instance is when there is impending inflation rise in a certain asset but temporarily prices are low, shortly accompanied by a sharp rise in prices.

The sudden and sharp increase in prices affect the overall balance of the market. Sometimes such imbalances can have far reaching effects.


How does the velocity of money effect inflation?

1. Velocity of money is the rate or frequency money gets exchanged over a period of time. It can be siad that Volcoity of money can be a variable that determines of inflation. It may be used as a a warning sign for hyper-inflation.

History of India

What are causes of inflation in India?

International inflating Market Currency, poor policies of the ruling Indian National Congress and the BLACK MONEY lying abroad


What role does inflation play in GDP?

nflation can mean either an increase in the money supply or an increase in price levels. Generally, when we hear about inflation, we are hearing about a rise in prices compared to some benchmark. If the money supply has been increased, this will usually manifest itself in higher price levels - it is simply a matter of time.

The relationship between inflation and economic output (GDP) plays out like a very delicate dance. For stock market investors, annual growth in the GDP is vital. If overall economic output is declining or merely holding steady, most companies will not be able to increase their profits, which is the primary driver of stock performance. However, too much GDP growth is also dangerous, as it will most likely come with an increase in inflation, which erodes stock market gains by making our money (and future corporate profits) less valuable. Most economists today agree that 2.5-3.5% GDP growth per year is the most that our economy can safely maintain without causing negative side effects. But where do these numbers come from? In order to answer that question, we need to bring a new variable, unemployment rate, into play


What product has the highest inflation rate?

In the last month, rough rice.


Why inflation is unjust?

inflation deprive the consumer of their purchasing power.Inflation increase the inequalities in the society,it hurts the poor people and gives benefit to the upper class.It reduces savings and discourages in the economy.Inflation encourages the hoarding essential goods by traders,it stimulates speculative activities.Inflation disrupts the smooth functioning of price mechanism.An uncontrolled result in the break down of the monetary system of the country,if the speed or inflation is high the export decline due to higher production costs and imports increases...

Percentages, Fractions, and Decimal Values

Has the South African Reserve b Bank failed in keeping inflation within the range of 3 percent to 6 percent?

Has the South African Bank failed in keeping inflation within the range of 3 to 6 percent? Discuss


Can belly inflation hurt you?

if your stupid and careless, yes. just stop if you feel pain and youll fart it out


What is the current inflation rate in Bangalore India?

Inflation rate in Bangalore as on September 2010 will be around 20%.


How can low inflation be achieved?

Low inflation can be achieved by increasing

interest rates to tempt people to save more and

also by increasing taxes to reduce peoples

disposable income.

Gas Prices

What is the definition of public finance?

Public Finance is the study of Government activities and how the Government finance those activities.

English to French
Hindi Language and Culture

What is the English word for 'mehangai'?

'Dearness' is the English word for 'mehangai'.

Coins and Paper Money
US Coins

1893 half dollar value?

Assuming the coin is circulated and has no mintmark, the 1893 Barber Half dollar is a slightly better date of the series. For an accurate assessment of value the coin needs to be seen and graded. Most coins show a lot of wear. In general retail values for low grade coins are $15.00-$50.00, better grade are $60.00-$220.00 and coins showing almost no wear run from $300.00-$470.00. Values are a market average and only for coins in collectible condition, coins that are bent, corroded, scratched, used as jewelery or have been cleaned have far less value if any to a collector or dealer.

NOTE: There is also a commemorative half dollar dated 1893 that has lower value.


Famous noise pollution quotes?

rock and roll is not noise pollution

Importing and Exporting

How does inflation affect exports and imports?

Inflation is the devaluing of currency by physically printing more without having equivalent assets added to your possession. It would make imports cost more and exports be worth less.

This is what happens when a trillion dollars is printed and poured into the pockets of those responsible for an economic crash in the first place. By printing a trillion without adding assets, it makes all the dollars worth considerably less. Everything around you goes up in price while you are making the same amount as before the printing splurge. This action makes every citizen of the USA poorer.


How much would 1000 dollars in 1963 be worth today?

About $7031.45

For more price comparisons, visit the Related Link.

Investing and Financial Markets

Paragraph on price hike of essential commodities of India?

When the cost of something becomes far more expensive than its original price.Price rise is a great problem of the day. It is a common phenomenon not only in our country but also in the world. Today the prices of necessary things such as food items, cloths, education materials, medicine and many other necessary things are going up by leaps and bounds. Price rise is caused by several factors like hording, population explosion, low productivity, natural calamities, wars, backwardness of communication, evil motives of dishonest businessmen, smuggling, black marketing etc. If the price rise is caused by the short supply of commodities, it is temporary. But it is very difficult to control the price rise caused by inflation. However, the people of low income suffer greatly and pass there days in constant anxiety. They find it, difficult to make their both ends meet. Price rise has terrible effects on man's character. It leads people to the path of corruption and moral degradation. Lows should be enforced strictly to bring the prices of the essential commodities within the purchasing capacity of the common people

Political Science

In the keynesian model of aggregate expenditure real GDP is determined by what?

The aggregate expenditure model relates aggregate expenditures, which is the sum of planned level of consumption + investment + government purchases + net exports at a given price level, to the level of GDP. The key word here is planned.

GDP is the same as aggregate expenditures(AE) except for one difference.

People, firms and governments don't always spend what they had planned.

So AE differs from GDP in that it deals exclusively with amounts firms intend to invest, and not necessarily taking into account amounts that will actually be invested as in GDP

Where GDP is defined as C + I + G + NX and I = Ip + Iu

(planned + unplanned investment), Aggregate Expenditures is defined as

C + Ip + G + NX.

AE (Aggregate Expenditure) is used in conjunction with GDP in the Aggregate Expenditures Model to predict future GDP direction. In this model, when AE = GDP then the economy is in equilibrium. According to this model an economy will move towards its equilibrium causing changes in the GDP.


How can inflation affect the construction industry?

Construction industry is similar to the manufacturing industry perhaps engg. made a product on the site rather than in a factory. while building something you required material & labor. when the inflation occur the price of the items & services increase, day to day essential things like food, fuel, consumer goods are become costly, thus this also effect individual & company. therefore the material price or manufactured things are become costly as the raw material prices goes up and similarly services are also become costlier.

Thus the material of cement, steel etc increase so would be the total cost of construction will increases.


What is actual GDP?

Check the link below.


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