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

Explain about pragmatic, Explain about Pragmatic Managerial economics i...

Explain about Pragmatic Managerial economics is pragmatic. In pure micro-economic theory, analysis is performed based on certain exceptions that are far from reality. Though in

Stagflation, STAGFLATION The term stagflation is a recent arrival in ec...

STAGFLATION The term stagflation is a recent arrival in economic literature derived from joining together the stage of stagnation and flections of inflation. The term has been

HHI, Suppose Fiat recently entered into an Agreement and Plan of Merger wit...

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel- Drive tractors consisted of five firm

Define profit maximisation theory, Q. Define Profit maximisation theory? ...

Q. Define Profit maximisation theory? Profit maximisation theory defines that firms (corporations orcompanies) will establish factories where they see potential to achieve the

How income level must remain constant - law of demand, How Income level mus...

How Income level must remain constant - law of demand The law of demand operates only when income level of the buyer remains constant. If income rises when the price of commod

Advantages of progressive tax, Advantages a.           It is more equi...

Advantages a.           It is more equitable.  The broader shoulders are asked to carry the heavier burden. b.          It satisfies the canon of productivity as it yields

Advantages of indirect taxes, Advantages a. They are less costly to ...

Advantages a. They are less costly to administer because the producers and sellers themselves deposit them with the government. b. If levied on goods with inelastic deman

Direct intervention of government in economy, Direct intervention   T...

Direct intervention   The government can also intervene directly in the economy to see that its wishes are carried out.  This can be achieved thorough: a.     Price and i

Manegerial discretion, How relevent is managerial dicretion in developing c...

How relevent is managerial dicretion in developing countries?

Does capital inflow lower us interest rates, Basic textbook models, such as...

Basic textbook models, such as the Mundell-Fleming model, say that capital inflow happens due to the domestic interest rate being higher than the world interest rate, and therefore

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