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Inflation

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.

1,474 Questions

Is government responsible for rising inflation?

Rising inflation will force the government's cost of borrowing money to rise sharply. With the US government currently carrying 17 TRILLION dollars in debt - 40% of it incurred in the last 5 years - a spike in inflation would force the Federal Reserve to raise interest rates (currently at or near zero), which would jack up the cost of servicing the government debt. This would cause real government spending on welfare programs and transfer payments to fall, because the government cannot borrow more than it is doing now. The result would probably be runaway inflation and a new Great Depression.

Similar to what Argentina is suffering now, with 40% per month inflation and the government practically facing an uprising.

How much was 250 worth in 1981?

$250.00 in 1981 had the same buying power as $685.18 in 2016.

Adjusting for inflation which is worth more 1908 pennies 1960 pennies 1990 pennies 2006 pennies 2007 pennies or any penny melted down and sold as scrap metal?

The copper in a US cent made before 1982 is worth almost 2 cents. Those made after 1982 are worth much less than 1 cent (but the cost of producing them is about 1.5 cents). Both types were made in 1982. But before you start sorting your pre- and post 1982 pennies, you should know that there is an administrative order prohibiting the "melting or exporting of large numbers of one and 5 cent coins" which could result in a fairly large fine.

How much would 120 million dollars in 1925 be worth today?

$120 million in 1920 is worth about $1,422,100,000.00 in 2015 dollars.

How does inflation affect farmers?

Effects of inflation on Farmers:

The price of farm products goes up faster than costs. Costs lag behind prices of product received by the farmers. It has been observed in India that inflationary tendencies during war and post-war periods have helped farmers in paying off their old debts. Moreover, farmers are generally debtors and have to pay less in real terms, while the land revenue, taxes, etc., do not rise much. Thus farmers generally gain during the periods of inflation.

Describe the law of demand?

A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.

Advantage of inflation in India's economy?

Inflation is the sustained increase in price level.

It usually has negative aspects to inflation, but it has some positive effects as well. Firstly, inflation is more desirable than deflation in most situations. This does not include hyper inflation by the way.

Secondly, inflation shows economic growth, or at least it reflects some economic activity.

The major positive aspect is that it helps smaller firms grow to larger firms. Assuming that both firms A and B sells similar goods. A is a large cooperation with economies of scales and B a smaller firm without economies of scale. Therefore the prices of goods A would be less than good B. Assuming that the inflation rate is 10%. The price of good A is $9 and inflation causes it to increase to $9.90. And for good B, since the cost of production is higher, it costs $10. And with inflation pushing it up to $11. The proportion of increase is similar, but the real price increase is different, firm A $0.90 and firm B $1. Thus firm B having a $0.10 increased revenue more than firm A.

Resulting in a larger benefit, ceteris peribus cost of production does not increase in proportion and other factors equalized.

Trends of inflation for last 5 years?

This space is for answering "What is the rate of inflation in America in the last five years?" [advanced answering tips]

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Value of 1924 peace dollar?

The 1922 Peace dollar is the most common and highest mintage of the series, it's worth around $21.
1922 Peace dollars are the highest mintage most common of the entire series. Average value for a circulated coin (regardless of mintmarks) is $31.00-$41.00.

Why the inflation rate of zimbabwe is so high?

Inflation rate of Zimbabwe is so high because there is no single manufacturing unit is establish. all commodities from needle to aircraft were imported. they take million of loan from foreign banks

How does inflation work?

Inflation takes place when someone buys an item (say a camera) for more than it is worth. That person then sells it on for a higher price, and this continues until this item is sold for less than was paid for it (a lot less). This basically means that money has dissapeared.

How can a society increase its potential output?

a society can increase its potential as follow 1 increase in productivity 2 increase in investment 3 inprove on man-power development

What is the GDP of Pakistan?

Current Pakistan's GDP is US $167 billion, which makes it the 48th-largest economy in the world or 27th largest by purchasing power adjusted exchange rates. Pakistan is South Asia's second largest economy.

Currently All Pakistan Goods Transport is playing its role in the growth of Pakistan by providing its transportation and logistics services all over the country.

What is the value of a 1991 silver dollar?

Assuming you are referring to the U.S. bullion piece carrying that denomination, known as an American Silver Eagle, this item would be worth just about the current spot price of the one ounce of silver it contains.

Although it is a legal tender coin, that you could spend for its $1 face value, its actual value is more accurately determined by its metal content.

What is macroecomics?

Macroeconomics is economics within the world, as how countries make decisions and how societies organize.

(Microeconomics is economics within businesses, as how companies make decisions.)

What would one million dollars in 1970 be worth today?

In 1862 the United States passed a law known as "The Legal Tender Act" as a part of this law was 'the Parity Act" which stated in relevant part that all legal tender will hold the face value of the note. So in essence a dollar in 1933, 1950 and in todays money is still worth the same because 'law' says it MUST be. The buying power of that money however does change, in 1950 a loaf of bread cost $0.14 per loaf today it would cost $2.00 per loaf (avg) - so if we use that buying power as a guide the dollar in 1950 was worth 7.5 dollars in 2009 (simplified). Source: 73D Congress 1st session report #43 (1933)

What happens when inflation falls?

Supply & Demand, Economics

Economic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.

What can people do to encourage oil companies and or gas stations to lower the high price of gasoline at the pumps?

It's all about supply , demand, and Profit. That is not what anyone in politics is looking for. The fact is we make a ton of money on the taxes from this product. More then the oil companies do. Under the current administration we are doing everything we can to cause the price of fuel to go up, both through taxes and capping production. If you want oil to go down, start allowing the drilling of oil off shore, start using the 400 plus year supply we have in Colorado and North Dakota.

The cost of oil is rising because that is what our current government wants to happen.

What is the value of an 1879 Silver dollar?

Please check your coin again and post a new, separate question. Anthony dollars were minted in 1979-81 and 1999. None contain any silver, and circulation versions have no extra value.

There are no US silver dollars of any type dated 1790.

What is the value of a 1971 US dollar?

Only if your 1971 coin is a uncirculated example, it may be worth about $5.00 because the 1971 dollar coins were not included in the Uncirculated Mint sets sold from the Mint in that year. If not, none of the Eisenhower dollars regardless of date or mintmark struck for general circulation have any silver and most are not worth more than face value. Only proof and uncirculated collectors coins sold from the Mint have premiums.

What factors determine potential GDP?

Factors that affect GDP are:

Consumption

Investment

Government

Net exports (imports-exports)

Y being GDP, we have:

Y=C+I+G+NX

Any change in one of these factors will increase or decrease the GDP.

How does inflation affect profit?

Well the same way as it affects anyone else.

If the business don't raise the prizes on whatever product they sell alongside the inflation it will end up paying higher and higher prizes on materials and services from other companies. Meaning lower and lower revenue.

How much would 100 dollars from 1961 be worth today?

If you mean what is 500 dollars in 1965 equivilant to in today's money value then the answer is about 3,600 dollars. If you mean what is 500 dollars in today's money equivilant to in 1965's money value then it is about 68 dollars.