Why did Spain's economy take a downturn during Philip II's reign?
Inflation and Taxes. As the price of goods and services went up, the value of money went down (inflation). When Spain expelled the Jews and Moors, it lost some of its most valuable artisans. The nobles didn't have to pay taxes leaving the burden of tax paying on the lower class.
Is zero inflation and consistent rise in food prices?
Because peoples not interested in Agriculture much so automatically it effects
The coin is an American Silver Eagle that's one ounce of pure silver. The value is tied to the spot price of one ounce of silver at the time of sale. As of 4-6-11 it's $39.28 at 10:30 am.
Artificial Inflation is inflation caused by a single person or group of people buying out most of the items of one kind and reselling them at a higher price.
Why over circulation or currency creates inflation?
The Federal Reserve maintains a tight control on the money supply. This is because over circulation of money of the production of too much money can and will lead to inflation.
To demonstrate this we can look at Germany as an example. To pay off the reparations to other countries after World War II they simply printed more money. However, this back-fired when inflation took a steep upturn, millions of percentage points above what it was originally. It cost millions of German marks to buy just a loaf of bread.
This is the reason why The Federal Reserve keep such close tabs on the money supply, because if not inflation in the United States could increase beyond exponentially, and could get out of control.
What impact does inflation have on the monetary unit assumption?
Inflation has a lot of impact on monetary unit assumption. Inflation greatly reduces the value of a monetary unit and acts as a hidden tax on consumers.
inflation deprive the consumer of their purchasing power.Inflation increase the inequalities in the society,it hurts the poor people and gives benefit to the upper class.It reduces savings and discourages in the economy.Inflation encourages the hoarding essential goods by traders,it stimulates speculative activities.Inflation disrupts the smooth functioning of price mechanism.An uncontrolled result in the break down of the monetary system of the country,if the speed or inflation is high the export decline due to higher production costs and imports increases...
What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
What does the inflation rate soars mean?
# The Inflation Rate Soars means the rate of increase in the price of goods and services over a given period of time increases tremendously.
What is the weight of a squash ball?
since there are two different types of squash ball, they weigh in different but usually around the 125 - 175g.
when heated a squash ball also bounces higher because its elastcity has been increased, whereas if it was frozen the opposite would occur.
squash balls don't bounce very high either, this is due to their coefficient of restitution being low, meaning that they conserve much of their energy so that they travel faster and harder when hit making squash a fasst paced and high energy game.
How does inflation affect exports and imports?
Inflation is the devaluing of currency by physically printing more without having equivalent assets added to your possession. It would make imports cost more and exports be worth less.
This is what happens when a trillion dollars is printed and poured into the pockets of those responsible for an economic crash in the first place. By printing a trillion without adding assets, it makes all the dollars worth considerably less. Everything around you goes up in price while you are making the same amount as before the printing splurge. This action makes every citizen of the USA poorer.
What is the GDP earnings approach?
Value of consumption, gross domestic investment, government purchases of goods & services, and net exports
Milton Freedman probably is the best person to look up for this answer, and he has written much on this topic.
Basically it is a monetary phenomina. Increases and decreases in the money supply create inflation or deflation. Think of the root form of this word, inflate, such as a balloon or a tire. Increasing the quantity of a price does not make sense, however rising prices due to increasing the quantity of money in the money supply does.
How does inflation affect business?
It affects your business because your products prices increase and so do the wages of any employees you have. If the inflation rates are 4% then that means in one year £100 will drop in value by 4%, so it will only be worth £96. Effectively, the business must then raise wages to cover this expense.
What is the official measure of economic growth called?
The official measure of economic growth is called Gross domestic product ( gdp) . I remember learning it in business
What are the most common impediments to international trade?
Three of the most common impediments to trade are tariffs, quotas, and embargoes.
Why did inflation set in during 1946?
Inflation is too much money chasing too few goods and services; in 1946, there was a lot of pent-up demand following the Depression and WW II, and lots of money that had been saved during WW II because there was nothing to spend it on.
GDP Total: 182 343 000 000 US dollars Per capita: 8 165, 83 US dollars
According to the quantity theory of money persistent inflation can only be caused by?
money supply growth that exceeds real GDP growth
The effectiveness of OPEC varies dependent of political and economic factors. During the 1973 OPEC induced oil crises their cartel actions created economic emergencies on global economies whose infrastructure were dependent on crude imports. The rise of the United States in 2014 as the world's largest oil and natural gas producer further weakens the effectiveness and coercive powers of the cartel. Moreover, non OPEC states such as Canada and Russia further weaken OPEC's threat of using oil as a weapon. Lastly OPEC states such as Saudi Arabia can and have been known to break the cartel producing as they wish to counteract potential oil crises.
Can fiscal policy be implemented to overcome inflation?
Yes! Increasing taxes and reducing government spending will decrease the money in people's hand.