Essays Tagged: "Price level"
How inflation and unemployement are related.
actual are. The technical definition of inflation is 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 ... ods and services. What this is basically saying is that inflation is a rise in the general level of prices in an economy. Whenever there is inflation, the prices of most goods and services are a littl ...
Subjects: Social Science Essays > Economics
Business Cycles.
erates automatically. However, this automatic regulation of the economy is actually achieved by the price level. Price level can be defined as the weighted average of all the final goods and services ... the final goods and services produced in an economy. A healthy economy is characterized by a stable price level. Fluctuations in price level affect the economy's real domestic output (RDO), unemployme ...
Subjects: Social Science Essays > Economics
Analyse the main costs of inflation
During the 1960's and 70's European governments, instituted various wage and price controls to reduce inflation. As the inflation grew, Governments perceived it as a greater pro ... on in purchasing power, so no economic cost. For instance, if wages increased by double, and so did price, then relatively, goods and services would be the same price. Fischer, in his book, "indexing, ... inflation caused income increase". This happens as people fail to recognize a general inflationary price level increase (Dornbusch). As a result of people failing to distinguish between nominal and r ...
Subjects: Social Science Essays > Economics
Major causes of inflation in Zimbabwe and southern africa in general and (possible solutions)
IntroductionInflation can be described as a tendency for the general price level to increase over a given time period. It can also be viewed as a case where too much mon ... as a case where too much money is chasing few goods. Inflation is usually measured by the Consumer Price Index (CPI) where a representative basket of consumer goods is analysed for changes in the pri ... vices pass the increases in the costs of production to their customers and this is reflected in the price increases. Imported inflation results from increased costs in the acquisition of forex and thi ...
Subjects: Businesss Research Papers
Wall Street Journal article - Aggregate Demand - Andy Pasztor, "Europe Aims to Make Big Satellites," The Wall Street Journal, June 16, 2005, p. B5.
ical representation gives a picture of an entire economy, considering both the total output and the price level. To analyze aggregate demand, we plot a line on a graph. This graph measures real output ... regate demand, we plot a line on a graph. This graph measures real output (the horizontal axis) and price level (the vertical axis). Like other demand curves, aggregate demand is downward sloping beca ...
Subjects: Businesss Research Papers > Markets & Exchanges
The Government's Aim Should Always Be To Im Prove Economic Growth!
mand-side policies are seen as short term policies which may lead to inflation (a sustained rise in prices which is measured by the retail price index). Supply-side policies are used to help markets w ... growth of the economy. The diagram below shows the effects of demand-side and supply-side policies: PRICE LEVELS REAL NATIONAL INCOME The diagram shows that when aggregate demand is increased from AD, ...
Subjects: Businesss Research Papers
Refinery blaze could push up petrol prices
How big of a fire could push up the petrol prices up so high? This article is regarding the two effects after the outbreak of the fire on the p ... upply is the quality of a good or service that a producer is willing and able to produce at a given price. According to the article, the first example is traced to the Coryton refinery where the outbr ... supply. "If the refinery fire affects supplies, this could be sufficient to push the average petrol price over the £1 per litre mark for the first time ever." Oil is a scarce natural resource, w ...
Subjects: Businesss Research Papers