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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.

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What contributed to inflation in Europe in 1600s?

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Population growth in Europe led to an increase in demand for consumer goods. This demand inflated the prices for the goods. At the same time, precious metals such as silver were pouring into Europe from the New World. This increase in money or bullion led to stimulation of the economy.

What is a price hike?

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When a price for a certain good increases, perhaps due to higher demand or lower supply...

Lower supply counts for difficulties in deliveration, low production etc.

Lower demand counts for difficulties in getting consumers to buy the good, like no interest for it.

What causes structural inflation in developing countries?

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increase in prices goods and services

when government prints more money

Is inflation good or bad?

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Inflation has always had an indisputable benefit for the governments playing this game, since few people understand what is happening until the policy has run amuck. Unfortunately, many of the most influential people in our society support a little inflation as a good thing. They argue that it keeps the nation out of depressions and sometimes provides a Robin Hood effectInflation has always had an indisputable benefit for the governments playing this game, since few people understand what is happening until the policy has run amuck. Unfortunately, many of the most influential people in our society support a little inflation as a good thing. They argue that it keeps the nation out of depressions and sometimes provides a Robin Hood effect

What is a resourse?

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a natural feature or phenomenon that enhances the quality of life

What happens to the open market operations during inflation?

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sell more government bonds

What is the value of a 1992 half dollar?

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It's worth at least 50 cents Almost 36 million were minted for circulation. If you found it in change it's worth 50 cents, the same as all other halves dated 1971 and later. If it's uncirculated, maybe a dollar, but most dealers won't pay more than a few cents above face value because of how many there are.

What are two variants of cost-push inflation?

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1. Wage Price Spiral

is when workers receive a significant wage increase, which is passed to consumers through higher prices, which decreases SAS. if wages continue to increase, then the Reserve Bank should increase the supply of money to restore full employment equilibrium......

1943 Silver dollar value?

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Assuming the coin is circulated and has no mintmark, the 1934 Walking Liberty Half dollar is a common 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 $12.00-$13.00, better grade are $14.00-$20.00 and coins showing almost no wear run from $30.00-$50.00. 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.

Does under inflating tires increase fuel economy?

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Over inflating tires can slightly increase gas mileage by creating less roll resistence (less tire touching the road). However, there are several downsides. Decreased traction means worse braking and handling, especially on wet pavement. Also, increased air pressure will cause premature and uneven tire wear in the middle of the tire.

What is the mathematical formula to calculate a rate of increase?

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The rate of natural increase shows the rate at which people are added to a given population by births and deaths (ignoring migration). It is usually represented as follows: Rate of Natural Increase = Crude Birth Rate - Crude Death Rate This version of the rate of natural increase shows net addition of people from births and deaths per thousand people in the population. Occasionally it is re-expressed as the additions to the population per one hundred in the population (it is important to determine which version of the rate of natural increase is being used when you see it in the literature).

Who benefits the most during periods of unexpected inflation?

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People who owe money benefit, because they are able to repay their loans in money that has less buying power.

People who own property only benefit from general inflation in value in that they may be able to borrow more against its value (not actually more in real value).

How may high demand and limited supply of products cause inflation?

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because when the demand increase the price increase to.and customers have no choice since they used to consume the same product for too long.

A small discribtion of the cause of the inflation?

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i think that the major cause of inflation is the way banks and lending companies create money out of thin air to lend. that plus the creation of money in mints adds up and eventually there is more money floating around than ft knox has gold to back it up with. so, to compensate, we make the dollar worth less so that we only have as much money as gold.

What role does the consumer price index play in calculating inflation?

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The higher the consumer price index becomes, the higher the cost of living will be because it will take a larger income to buy the same things they used to buy due to increased prices.

What is the relationship between the purchasing power of money and the rate of inflation?

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Purchasing power of a money is --> For X amount of money u can buy A mount of goods,

Inflation is ---> General price rise in commodities

Rate of inflation ---> the increase/decrease in inflation is subsequent years.

So, naturally, If rate of inflation is high PP of money will go down

B'cuz, Price of products are high, the power of ur money to buy them comes down

So, PP of money and Rate of inflation is inversely related..

What is most likely to lead to an increase in the underlying rate of inflation?

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Inflation at its core is a monetary problem. It is simply too much money chasing too few goods. The father of this theory is Milton Friedman (see link below).
Rapidly rising production costs

What was the purchasing power of a dollar in 1900?

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Because today's economy is so different from that in 1900, it's very difficult to come up with a single value comparing the value of today's dollar today with a dollar that far in the past.

  • A number of sources including the Bureau of Labor Statistics indicate that a comparable "market basket" of goods that cost $1 in 1900 would cost about $25 to $28 today.
  • Other sources that compare wages indicate that a worker making $1 a day in 1900 would make about $130 if they're unskilled, and about $200 if they have a skilled profession.
  • It's even harder to compare quality-of-life costs; for example people in 1900 weren't as healthy in general nor did they have things like radio, TV, airplanes, etc. The economist Samuel Williamson ("Measuring Worth", 2015) attempted to take those factors into account and came up with a ballpark figure of $1 in 1900 being equivalent to over $800 today in terms of quality.

Value of 1971 half dollar?

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None of the Eisenhower dollar coins (1971-1978) made for general circulation have any silver or are worth more than face value. Only Proof and collectors coins with "S mintmarks sold from the US Mint contain any silver, and that's just 40%.

NOTE: Because no Ike dollars were included in the 1971 & 1972 Uncirculated Mint sets sold from the US Mint, typical Mint State coins from 1971 & 1972 do have values of $2.00 to $8.00 depending on the grade and mintmark.

How much would 4 million dollars in 1968 be worth now?

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4.5 million dollars in 1962 was worth about $35.3 million in 2015.

What are some non example of inflation?

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One of the biggest example that comes to my mind for examples of infaltion is minimum wage. Way back when, back in the day, minimum wage was, like, 25 cents. And people could live off of that. They could buy their food clothes and everything else. Now because of inflation, food and clothes along with everything else is more expensive and minimum wage has been increased to $5.25 or something close to that?