Inflation is classified on the basis of the process through which it is induced. Under this category‚ there are a) deficit induced inflation; b) wage induced inflation; c) profit induced inflation etc. When it comes to deficit induced inflation‚ this is caused by the adoption of unbalanced budgetary policies. The government would resort to deficit financing which means government spending in excess of its revenue receipts. When the economy is not capable of sustaining the extra resource released
Premium Economics Inflation Money
Inflation In simple language‚ inflation is the rate at which prices increase annually. Essentially‚ prices go up due to two factors: A: cost-push factor B: demand-pull factor Cost-push factor inflation occurs when there is increase in cost of production of an item‚ which then gets translated into a higher price for that item in the market. Demand-pull factor inflation occurs when there is more money with the consumers compared to the total number of goods available in the market. With too much
Premium Inflation Marketing
Chapter 08 INFLATION 8.1 Introduction Stable inflation is recognized as an integral component of sound macroeconomic policies. Over the last decade‚ with a few exceptions inflation around the world has been at a retreat. More recently‚ with a pick-up in growth‚ inflation has started to rise again. Pakistan’s economy exhibited a similar trend with a low inflation environment for last several years with a sharp pick up over the last three years. There are several internal and external factors which
Premium Inflation
Economic Essay - Inflation in Zimbabwe As we all know‚ inflation in Zimbabwe is the most worst ever‚ with the rate of inflation increasing every single hours. Currently‚ the estimated Zimbabwe’s annual inflation rate is at 89.7 sextillion (1021) percent‚ and the prices keep doubling actively increasing every 24.7 hours. Inflation was stable until Robert Mugabe began a program of land reforms that primarily focused on taking land from white farmers and redistributing those properties and assets
Premium Inflation
A STUDY ON FOOD INFLATION IN INDIA CAUSES AND REASONS By: Introduction: India is the world ’s second largest producer of food next to China‚ and has the potential of being the biggest food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies. India is one of the world’s major food producers but accounts for less than 1.5 per cent of international
Premium Agriculture Inflation Food
Name:___________ Date Due:__August 01‚ 2011_______ Chapter 8: Unemployment and Inflation 1. What does the unemployment rate measure? ___________________________________________________ ____________________________________________________________ ______________________________ 2. What does the labor force participation rate measure? ___________________________________________ ____________________________________________________________ ______________________________ 3. If the
Free Unemployment Inflation
How Inflation expectations influence monetary policy effectiveness and should inflation targeting (IT) be adopted in China? Introduction After the 2008 financial crisis‚ to stimulate the economy and stabilize the prices‚ the Chinese central bank implemented a straightforward monetary policy. This policy consists of increasing money supply and lowering interest rates‚ which presented a risk of inflation. According to National Bureau of Statistic (NBS) data‚ there has been a 2.5% increase in Consumer
Premium Inflation Monetary policy Central bank
Depression of the 1930s has involved a continuing effort by the government to find a mix of fiscal and monetary policies that will allow sustained growth and stable prices. That is no easy task‚ and there have been notable failures along the way. Inflation‚ however‚ has proven more intractable. Prices were remarkably stable prior to World War II; the consumer price level in 1940‚ for instance‚ was no higher than the
Premium Economics Unemployment Macroeconomics
Hidayatullah National law university-Raipur | Relationship of Gold and Inflation in the Indian context | Project for Semester I | | Akanksha Dikshit | 8/21/2012 | The Project analyses the relationship of Gold prices and inflation in India. Gold holds a special place in the Indian psyche and cultural ethos. It influences the Indian economy like no other material. The study is based upon the study of existing research material. | Acknowledgements I thankfully acknowledge the help
Premium Inflation Bretton Woods system Investment
__________ ID: A Test 2 5. If the economy is in a recessionary gap and the price level falls very slowly‚ then the result will be a prolonged period of a. high unemployment. b. production above potential GDP. c. shortages in supply. d. inflation whenever supply increases. Figure 10-8 6. The slope of the consumption function is measured by the marginal propensity to save. 7. If the stock market falls by 25 percent next year and remains down‚ what is most likely to happen to the
Premium Inflation Macroeconomics Supply and demand