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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
What problem did inflation cause during the revolution?
Inflation during the Revolutionary War led to profiteering. Profiteering is when someone makes what is considered an unfair or excessive profit.
How much was 1000 worth in 1919 compared with 2010?
$1,000.00 in 1919 had the same buying power as $13,087.82 in 2010 and $14,334.85 in 2016.
Hyperinflation is a rapid rise in the general price level. When inflation occurs, sometimes people anticipate further inflation. They then spend all their savings "now" to beat the anticipated price increases; after all, money in the bank during inflationary periods only can depreciate in value. Businesses buy more capital goods. Workers get paid higher and higher wages. These actions will further intensify the pressure on prices. Inflation drives inflation further; it eventually may cause economic collapse.
When does inflation occur in a dynamic aggregate demand and supply model?
Inflation raises the prices of the goods, so the real wages fall (ceteris paribus). So we are moving on the demand curve up and left. The companies can afford to produce more for that height of the prices, so the gap appears
Is OPEC to blame for high gas prices If so why?
OPEC wants gas prices to be higher so that its member nations can profit more from oil.
Which was the decade of high inflation and high unemployment?
Which was the decade of high inflation and high unemployment
Inflation and economic growth strife contributed to -------------two words?
What do you understand by the concept of deflation and the cause of deflation?
an increase in which exceeds the supply
How Rising inflation affects the economic growth of India?
As the inflation is rising so the people would not be able to spend their money on other goods other than food. So in this way the demand for other goods other than food would fall and ultimately the profit as well as revenue of all the sectors would fall due to which all private companies would start cutting their work force and thus unemployment would rise and it ultimately affects our country GDP which is used to measure Economic growth of a country.
How do you inflate a rubber ball?
If it is a solid rubber ball it is not inflated. A hollow ball can be inflated.
The more pressure inside, the "harder" the ball will be and the higher it will bounce.
To much pressure and you risk rupturing the "rubber" bladder.
Explain the nature and scope of economics with and example?
Economics is the social science that studies the production, distribution, and consumption of goods and services
A definition of modern economics is that of Lionel Robbins in a 1932 essay:
"the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."
Scarcity means that available resources are insufficient to satisfy all wants and needs.
Economic concepts
Common problems among different types of economic systems include:
* what goods to produce and in what quantities (consumption or investment, private goods or public goods, etc.)
* how to produce them (coal or nuclear power, how much and what kind of machinery, who farms or teaches, etc.)
* for whom to produce them, reflecting the distribution of income from output.
The subject thus defined involves the study of choices as they are affected by incentives and resources
Areas of economics may be divided or classified into various types, including:
* microeconomics and macroeconomics
* positive economics ("what is") and normative economics ("what ought to be")
* mainstream economics and heterodox economics
* fields and broader categories within economics.
One of the uses of economics is to explain how economies, as economic systems, work and what the relations are between economic players (agents) in the larger society.
With inflation how much would a dollar in 1901 be worth today?
$1. A dollar bill will always be worth $1. it may go down and you need to use a few $1 bills to equal one dollar, but it will always equal one dollar.
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The repaid loan will buy less goods. Everything is affected by severe deflation. Not only does the lender suffer, but so does the payee. Normally one will have to pay twice as much to bring current the true value at dollar value.
What is menu cost in term of inflation?
Menu cost is a cost of inflation. The term came from the menu of restaurants which has to be reprinted very frequently because of the changes in the menu prices.
900 in 1965 worth how much today?
$900.00 from 1965 would be worth $6,229.30. In the time period there was about a 4.4% annual increase from inflation.
How would high oil prices cause inflation?
oil in general is used i production of goods and services.. oil as in petrol oil can be used in manufacturing products and if oil price is high, cost of production would be on the increase so this will result in the increase in the price of that product.
Because it is not about man's capacity to consume, but about his ability to produce.
