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mario050
Pridružen/-a: 20.04. 2022, 22:48
Prispevkov: 11
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 Objavljeno: 20 Apr 2022 22:51 Naslov sporočila: Economic inflation, types of inflation The Invisible Robber! |
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By that I mean inflation affects the money supply so that its purchasing power decreases, and we as consumers are affected by the price of things we buy with the same amount of money. Let’s say we buy a car for five thousand dinars, then after inflation we’ll buy the same car for eight thousand dinars.
What are the Causes of Economic Inflation?
Scholars were interested in studying and understanding economic inflation because of its importance and direct effects on human society. Thus, they came up with a few theories that explain inflation, as these theories explain inflation in a lot of ways.
First: Demand-pull inflation
Inflation of this type occurs when the total demand exceeds the total supply, as the population wants to buy more products on the market, and producers aren’t able to meet the demand.
Economic inflation, types of inflation The Invisible Robber!
This will lead to price increases in the short term, and in response to price increases, trade unions will demand wage increases since the real value of wages has decreased, which will increase demand again, which will lead to price increases.
source: Theboomoney |
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