Inflation, Managerial Economics

Assignment Help:

Meaning

The word inflation has at least four meanings.

  • A persistent rise in the general level of prices, or alternatively a persistent falls in the value of money.
  • Any increase in the quantity of money, however small can be regarded as inflationary.
  • Inflation can also be regarded to refer to a situation where the volume of purchasing power is persistently running ahead of the output of goods and services, so that there is a continuous tendency of prices - both of commodities and factors of production - to rise because the supply of goods and services and factors of production fails to keep pace with demand for them. This type of inflation can, therefore, be described as persistent/creeping inflation.
  • Finally inflation can also mean runaway inflation or hyper-inflation or galloping inflation where a persistent inflation gets out of control and the value of money declines rapidly to a tiny fraction of its former value and eventually to almost nothing, so that a new currency has to be adopted.

Related Discussions:- Inflation

What is difference between monopoly and perfect competition, What is the di...

What is the difference between monopoly and perfect competition? Monopoly versus Perfect Competition: 1. Perfect competition is equal to monopoly competition, at the perfe

What are the sources of mononpoly, Question : i) Consider a discriminat...

Question : i) Consider a discriminating monopolist is selling a product in two separate markets in which demand functions are: P 1 = 6 - Q 1 P 2 = 18 - 2Q 2 The mono

Managerial principles, managerial principles to consider when determining l...

managerial principles to consider when determining level of output of afirm

Policy conflicts, Policy conflicts In their attempts to achieve the po...

Policy conflicts In their attempts to achieve the policy objectives, governments often face what are called conflict of objectives.  These arise partly because unlike private

The scope of managerial economics, Economics has two major branches: (1) mi...

Economics has two major branches: (1) micro economics, and (2) both micro and macro economics theories. The parts of micro and macro economics that constitute managerial economics

Social cost of unemployment, The Social Cost of Unemployment i.      F...

The Social Cost of Unemployment i.      For the individual, there is the demoralizing effect which can be devastating particularly when they are old.  This is because as some

the total cost of giving this insured service, The services of a certified...

The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50 percent of that cost. Under the plan, the clients covered used 625 hours of this

Case syudy., Please read the case study given below and answer questions gi...

Please read the case study given below and answer questions given. Case Study Electron Control, Inc., sells voltage regulators to other manufacturers, who then cu

Show the example on transaction cost theory, Q. Show the example on transac...

Q. Show the example on transaction cost theory? Coase begins from standpoint that markets could in theory carry out all production and that what needs to be illustrated is th

Attributes in designing a good tax system, Question: a. What are the b...

Question: a. What are the basic attributes in designing a good tax system? b. Explain briefly how tax systems affect economic efficiency. c. The trade unionists advocat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd