Inflation

They come out of school and can get a good paying job due to high money circulation and low prices

my answers: the general price of goods will increase. Much money will purchase fewer goods. The producer will have to produce more so as to increase it sales. The public will suffer for this actions. Bank lending rate will be higher as demand for money will be of great importance.

That is how it is supposed to work. The fewer dollars, the more a dollar is worth.

It would be worth $10,000. If you deposited the money into an interest bearing account you would only be able to figure it out if you figure out the annual rate, times the number of years and add the $10,000.

there are two reasons.

1. A dollar today can earn interest so you will have more than a dollar in the future.

2. Inflation will reduce the purchasing power a dollar over time, so it's better to get the dollar today and spend it today because it won't buy as much stuff tomorrow.

Inflationary gaps can arise when the economy has grown for a long time on the back of a high level of aggregate demand. Total spending may rise faster than the economy's ability to supply goods and services. As a result, actual GDP may exceed potential GDP leading to a positive output gap in the economy.

One way to work this out would be to find out the price in 1950 of gold/silver, work out how much Gold £40,000 would have bought back then and then apply today's gold prices to arrive at the answer. In 1950 the average price of a troy ounce was $34.72. The GBP/USD exchange rate was roughly .42p to $1 so £40,000 was equivalent to $95,238. This would have bought ~2743 troy ounces. At today's gold price ($1245) this would be equivalent to $3,415,072 or £2,276,714. Obviously these are not exact but should be more or less correct.

if Infalation rate increase bond price will fall.

1918 saw the average raise rise to $875 per year. The average house cost $6,715 and the average car cost $360. Although it is difficult to find the price of a pint of milk, a gallon of milk cost around 55 cents in 1918.

If the employer is unwilling or unable to inflation proof the salaries of his employees, they will obviously become disillusioned and disgruntled. Some may seek greener pastures and if those that leave include key individuals, the profitablity of the company may be adversely affected.

Inflation is measured by calculating the percentage rate of change of price index,

which is

calledthe inflation rate. The rate of inflation is usually expressed in annualised term,

though the measurment periods are usually different from one year. Inflation

rate= p - P /P *100

i.e, p minus P divided by P into100.

Where, p= current average price level, P= price level a year ago.

During times of high inflation, it is best to regulate the price increase of the retailers. Policies should include price regulation, and consumer control.

$5,000.00 in 1988 had the same buying power as $10,248.05 in 2016.

$1.00 in 1950 had the same buying power as $10.02 in 2016. Annual inflation over this period was about 3.55%.

Inflation

Lower unemployment means there are more people with incomes this means the government will receive more income tax. Furthermore there are less people dependent on the government such as benefits therefore the government is spending less or they can use that money for healthcare, education or policing. More families with a higher income will result in higher consumption this means more money from VAT.

High inflation simply means an increase in price over a period of time, the government wants to keep inflation down as it means prices will not be ridiculously high.

One problem with inflation is redistribution. Inflation makes some people better off while it makes others worse off. The three things that cause redistribution are price effects, wealth effects, and income effects.

I have a silver dollar that was in mint condition, dated 1835. It was worth $125 two years ago. Being that yours is in the 1900's, it's probably worth from $25 to $50. You can always call coin shops. They'll tell you over the phone, what your coin is worth. Call around before you sell it. If you want more money, sell it on E-bay.

The above information is not meaningful. There are guides to Peace dollar prices at many web sites. Please see the related link below.

# The Inflation Rate Soars means the rate of increase in the price of goods and services over a given period of time increases tremendously.

combinations food(x) clothing(y) MRS(xy)

A 1 12 -

B 2 6 6

C 3 4 2

D 4 3 1

A(1,12) B(2,6) C(3,4) D(4,3)

at each combination consumer receives same level of satisfactn.as income is given and constant and there is no scope for underspending when consumer consumes additional unit of one commodity(food) he has to give up some units of clothing.at each level sacrifice in terms of clothing reduces as now clothing becomes scarce in comparison of food.according to law of DMU with every additional consumption utility diminishes and hence consumer starts valuing less food for clothing.hence MRS is falling.

There's a pretty good discussion of this at http://understandingthemarket.com/?p=65

It appears that is was just over 3%, accoring to the above reference.

Increased applications for unemployment benefits directly reflect the loss in the number of jobs available to workers. The actual cost of paying unemployment benefits to the unemployed, is actually very small compared with other government spending. Paying unemployment benefits to those who need it, actually benefits the country's economy, because it prevents jobless individuals and their families, to overwhelm other government programs such as welfare. Paying unemployment benefits also prevents individuals to fall into poverty-related social problems, which would result in higher costs to deal with their consequences and to bring individuals back to join the work force, which at the end, is what keeps the economy rolling and growing.

A British one pound note was worth $4.25 US currency exchange in 1940

The value to a coin / banknote collector today would depend on condition of note. You should be able to find on Google search and Ebay

1 pound in 1940 is widely rated as very roughly equivalent to about 40 to 45 pounds now.

Please bear in mind that in 1940 income tax rose sharply (to finance the war) and that increasingly rigorous rationing came into effect. Some goods that are readily available now were scarce because they were requisitioned by the government: for example, photographic film was often difficult to obtain because over 80% of the entire output was used by the government, mainly for aerial reconnaissance. The production of most perfumes was stopped on the grounds that these were inessential luxuries and so on. The prices of essentials were fixed (and moderate). As a result, they was less and less to spend money on - and this in turn led to inflation. In 1940 prices rose by about 10%

I hope this answer is of use to you.

Joncey