Inflation

Deflationary policy refers to economic measures implemented by governments or central banks aimed at reducing inflation or curbing excessive economic growth. This can involve increasing interest rates, reducing government spending, or tightening the money supply to decrease consumer demand and stabilize prices. The goal is to maintain economic stability and prevent the negative effects of overheating, such as inflation. However, if applied too aggressively, deflationary policies can also lead to reduced economic activity and higher unemployment.

no

a large number of sellers produce a product or service that is perceived by consumers as being different from that of a competitor but is actually quite similar

Inflation

Yes, it's hardly an economic issue

Breathe in deeply using your diaphragm not your chest / lungs.

That's how we should be breathing anyway...

Because it distorts statistics about overall economic performance.

Depends who the middleman is

I would say a dollar...

Inflation is good for farmers because they will be able to raise their prices high due to the scarcity of what they sale. Almost in an auction sort of way to see who will buy their crops.

NO

The Answer is B) Steady and predictable changes in the money supply.

Inflation is the rise in the price level of a specific economy. Unanticipated inflation hurts savers and creditors. It declines the value of money. $1000 today may only be worth $500 dollars tomorrow if inflation is occurring at 100%.

Yes. The government, as they are the ones who inflate the currency in the first place.

The other one who benefits is the Central Bank known as the Federal Reserve Sys

Big banks are also allowed to borrow from the Federal Reserve and are regulated by them. The process goes like this. An amount is deposited in any bank which is a member of the Federal Reserve and lets say it is $100.00. The reserve that bank has to keep is only 10%. It can loan out 90 bucks. Then that is re-deposited and they can loan out 81 bucks. That is re-deposited and then 72bucks goes out. Get the picture. On $100. Those banks can loan up to 900.00 before it runs out. And charge interest on the amount. They are charging interest on 900 where only 100 is the starting point. Consider someone builds a $100,000 house. The material is paid for and the labor is paid for. The bank will collect the interest for the length of the loan and receive in excess of $200,000 --double the amount it cost to build.

Now consider this, the most of that loan money is from depositors and savings accounts.

And remember, it is the Federal Reserve Sys that handles the nation's monetary and not the treasury since the turn of the 20th century. They are the ones that create more dollars that are backed by nothing. More they print, higher the inflation goes. More you have of anything, the less it is worth.

$100.00

LIFO method

Essentially, it is too much money chasing too few goods or services. The causes of the excess of available money and the shortages of a good or service are almost limitless but some of them are; the government prints too much money, too much credit is available (This is more the problem in the recent past - credit cards alone have created more money than any gov't.). A sudden change in society ( A fad, a disaster or financial manipulation, for example) can create an excessive demand for a product or service.

during inflation the best method to use inventory valuation that produces that produces that least amount of profit is

this is the comparison of what they need or want by exchanging or traing

Because money's value is based on its scarcity but government has the power to print (that is create) new money. And they have used that power to print new money for themselves. When it gets into circulation it inevitably drives up the price of everything. If money was linked to gold or silver then it would be impossible to arbitrarily create new money and its value would tend to be steady or actually increase over time.

What cost $1 in 1902 would cost $27.39 in 2008.

A good description of "inflation" is an increase in prices and a fall in the value of money. Inflation is usually represented as a percentage increase for one month over the same month the previous year. Double-digit inflation is when this percentage is greater than 10%. If inflation rises even more than 100% (i.e. prices are twice s high as last year) it is usually called "hyper-inflation".

Inflation rate of a country is the rate at which the price of essential commodities in a country is increasing.

There is no specific advantage of Inflation, but all country's need to have inflation. If prices of commodities do not go up, then the country's economy is said to be in a stand still. An inflation rate of around 5% is considered a healthy inflation rate and it represents an economy that is growing at a steady pace

Disadvantages:

When the inflation of a country goes beyond control say for example 10% or more then it has a lot of ill effects on the country & its citizens

1. The spending power of the common man comes down

2. Essential commodities prices shoot up and people cannot afford things like food, clothing & shelter

etc...

3.1% (2008)

Money from the black economy is sometimes invested in legal ventures to make a lifestyle look like it's the product of legal work. This means that sometimes there's a lot of money flowing through the system and this results in an increase in the price of some goods. In Moscow, for example, due to corruption and the existence of many billionaires, prices are high which means some Moscovites have trouble buying necessary goods such as food and clothing.