What is the solution for controlling inflation in Pakistan?
Solutions for inflation are,
A. Technological advancement as it will decrease the per unit cost in the country and will support the industries to meet the excess demand pull and cost push problems. That will reduce the inflation in Pakistan.
B. If it is demand pull inflation so Government should charge higher amount of taxes and facilitate more with the help of subsidies to firms by which they could meet up the problems of excessive demand and cost problem. That will also surely help us to solve the Inflation problem in Pakistan.
By: Ghamz-e-Ali
falconsial@yahoo.com
$10.00 in 1955 had the same buying power as $88.59 in 2016.
What best explains the cost-push inflation?
Increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs.
~Rising production costs~
How does inflation affect the balance of payments?
Inflation affects low income earners more than high income earners. This is because low income earners' income tends not to rise as quickly as prices, therefore, their purchasing power decreases. Also, low income earners do not have the skills to demand higher wages. It should be noted that high inflation generally leads to interest rate increases. This affects low income earners' cost of living and compounds the other affects of inflation. So, inflation decreases purchasing power of low income earners relative to high income earners, whose income increase as quick as inflation. Ultimately, income distribution becomes less equal.
Why can't banks just create money at will so that all people will have what they need?
If banks produce more money to suit everyone's needs, something called inflation occurs. Inflation will cause the purchasing power of money to decrease, that is, a loss of value of money. The money will be worth less to account for the extra money.
Who introduced inverse demand function in economics?
Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 100 people in the community, each of whom has an identical inverse demand function given by P = 10-1.0q, where q is the number of miles preserved and P is the per mile price he or she is willing to pay for q miles of preserved river. If the marginal cost of preservation is $500 per mile, how many miles would be preserved in an efficient allocation?
How did inflation effect Rome?
Inflation:
Especially luxurious emperors like Commodus depleted the imperial coffers. By the time of his assassination, the Empire had almost no money left.
Money could be acquired by taxation or by finding new sources of wealth, like land, but the Empire had reached its furthest limits by the time of Trajan.
Nero and other emperors debased the currency in order to supply a demand for more coins. By debasing the currency is meant that instead of a coin having its own intrinsic value, it became representative of the silver or gold it had once contained. By the time of Claudius II Gothicus (268-270 A.D.) the amount of silver in a supposedly silver denarius was only .02%.
This led to or was severe inflation, depending on how you define inflation.
Land:
Rome's wealth was originally in land, but this gave way to wealth through taxation.
The Cato Institute says that emperors deliberately overtaxed the senatorial (or ruling) class in order to render it powerless. To do this, the emperors needed a powerful set of enforcers -- the imperial guard.
Once the wealthy and powerful were no longer either rich or powerful, the poor had to pay the bills of the state. These bills included the payment of the imperial guard and the military troops at the empire's borders.
"Feudalism":
Since the military and the imperial guard were absolutely essential, taxpayers had to be compelled to produce their pay. Workers had to be tied to their land.
To escape the burden of tax, some small landowners sold themselves into slavery, since slaves didn't have to pay tax and freedom from taxes was more desirable than personal liberty. Since the Empire wasn't making money from the slaves, the Emperor Valens (368) declared it illegal to sell oneself into slavery.
The small landowner had become a feudal serf.
How does inflation reduce buying power?
the price of things has risen while your salary did not, meaning you have lesser number of items you can buy with the money you have as compared to what you could have bought before inflation.
Quoted from Wikipedia.org
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of the functional currency buys fewer goods and services;
It could also be defined as a cosmological event at the very beginning of the universe during which the universe expanded faster than the speed of light in a fraction of a fraction of a second.
What factors affect the inflation rate of a country?
There is many factors but i will try to state some of them
1.The demand for an item is much more than the supply.
2.The economy and the rarity of geting the resources to sell
3.The ammount of money in the comunity For example items cost more in Cali than Arizona
4 The historical importance or age for example michael jackson stuff is more money now because of michaels death also antiques
There you go hope i helped
What would 1000 dollars in 1885 be worth in 1970?
$1000 in 1885 would be $4314.50 in 1970.
Also, if you were to buy exactly the same products in 1970 and 1885, they would cost you $1000 and $245.45respectively.
What is the definition of economic inflation?
Economic inflation or just inflation is the rate at which the general level of prices for goods and services is rising. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.
Inflation or deflation will always occur in a economy but the role of the Fed is to make less severe.
What is the value of a 1882 Morgan dollar?
1881 is not a rare date for Morgan Dollars, unless it has a "CC" mintmark on the reverse
Please see the Related Question for more information.
More:The 1881 Silver Morgan Dollar was minted in 4 locations: Philadelphia, Carson City, New Orleans and San Francisco. Here are the values of these coins according to USA Coin Book:Philadelphia (no mint mark): In good condition, this coin is worth about $20 up to about $46 in MS60 mint condition. In MS65 brilliant uncirculated condition, this coin is worth $187. Proof coins were minted here as well, which are worth about $2,900 in PR63 proof condition.
Carson City (small "CC" mint mark): In good condition, this coin is worth about $335 up to about $630 in MS60 mint condition. In MS65 brilliant uncirculated condition, this coin is worth $1,100.
New Orleans (small "O" mint mark): In good condition, this coin is worth about $20 up to about $46 in MS60 mint condition. In MS65 brilliant uncirculated condition, this coin is worth $1,700.
San Francisco (small "S" mint mark): In good condition, this coin is worth about $20 up to about $40 in MS60 mint condition. In MS65 brilliant uncirculated condition, this coin is worth $180.
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
What is the relationship between inflation unemployment and Real GDP?
The relationship between unemployment and GDP is called Okun's law. It is the association of a higher national economic output with the decrease in national unemployment. This is because in order to increase the economic output of a country, people will need to go back to work, thus lowering unemployment. Empirical studies on the relationship between GDP and unemployment show that for every percentage point fall in the unemployment rate there is an increase in GDP by 2.5 percent. Experts believe that the reason for this large coefficient is because the unemployment rate does not count discourages workers who obtain a job before they are counted in the unemployment numbers. Another reason is when economic output increases firms typically don't hire new workers but have their current workers work for longer hours. Also some industries have increasing returns to scale where increasing the labor force has a multiplicative effect on their output.
What is value of 1880 silver dollar?
Assuming the coin is circulated and has no mintmark, the 1889 Morgan dollar is common. The retail values are $32.00-$38.00 depending on condition. 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.
How are inflation and profiteering related?
Hello my name is Andrew and im gonna give u my answer ( this is helpful) u have come to the right place. My answer is that they both charge an extra price for the original price of a good. Well that's it folks . Tweet me at Twitter at Andrew27. P.S I gave u the wrong answer hahahahaha . nah im just jokin with ya i gave u the right answer. Goodbye. ^_^ *_* :)
What is dis inflationary pressure?
Inflationary pressure is when the price of things in general increase at a higher rate than wages, thus causing a financial strain.
Assuming the coin is circulated and has no mintmarks, the 1879 Morgan is a common date. For an accurate assessment of value the coin needs to be seen and graded. Most coins of this year have seen heavy use and show a lot of wear. In general retail values for low grade coins are $31.00-$33.00, better grade are $34.00-$35.00 and coins showing almost no wear run from $36.00-$41.00. Values are a market average and only for coins in collectible condition, coins that are bent, corroded, scratched or have been cleaned have far less value if any to a collector or dealer.
What assets should you own in high inflation periods?
We are heading into a period of high inflation due to the impact of oil costs. What are stocks that will survive this - other than the obvoius - Oil stocks!
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How does inflation effect savers and person on fixed income?
Inflation is the increase of good and services due to a weakening currency. Ex U.S Dollar
A saver will only be able to buy less with inflation in mind. People on fixed income are also restricted and since they are on a limited income their dollar buys less beacuse of inflation.
Franklin half dollars (1948-1963) are so common most are valued for the silver, about $11.00 as of today. The 1952 issue is a high mintage coin.
NOTE: The values for any silver US coins follow the Spot Price of silver, so values go up & down.
What is the cause the unemployment part of stagflation?
Stagflation is an economics term used to describe the situation when you have a stagnant economy (no job growth) but high unemployment and high inflation. This is usually caused by an increase in the total labor force. There is just too many people in the workforce and not enough jobs available.
Why did the plague lead to an increased wage rate and inflation?
I'm not sure about this but I think because people were so sick they couldn't work meaning they couldn't make money and if they can't work or make money than that increases unemployment rates because they can't work so they have to find new people and nobody is buying anything because they have no money because they're aren't working. I'm not an expert on this kind of stuff so if anyone has a better answer please improve mine!!!!