What is inflation, Macroeconomics

Assignment Help:

Q. What is Inflation?

Inflation between two points in time is defined as percentage increase of price index between these two points in time. 

Comments:

  • Price index is calculated at a certain point in time, inflation over a time period, characteristically one year
  • Inflation may just as well be defined as percentage change in the price level.
  • Inflation is independent of which year we use as our base year for our price index.
  • Youfrequently hear that inflation is 'percentage change in prices'though keep in mind that 'prices' is then short for the price level.
  • Becausethe price level may be defined in several different ways (using different goods and different weights in the basket), inflation can be defined in several different ways.
  • if the price index reduces between two points in time we say that inflation is negative or that we have deflation.

 


Related Discussions:- What is inflation

Explain about phillips curve, Q. Explain about Phillips curve ? The Ph...

Q. Explain about Phillips curve ? The Phillips curve  According to traditional Phillips curve, there is a negative and stable relationship between unemployment andwage in

the effect of on reserves and the monetary base, Many developing countries...

Many developing countries have suffered banking crises in which depositors lost part or all of their deposits (in some countries there is no deposit insurance). This type of crisis

Classical model, using a graph of the classical labour market,illustrate th...

using a graph of the classical labour market,illustrate the effects of a real wage existing in the market that is lower than the equilibrium real wage.what will eventually happen i

International trade, Suppose home cost pricing prevails in international tr...

Suppose home cost pricing prevails in international trade, while world output is declining. Consider two economies, A and B, both having floating exchange rates and the same moneta

Mean and variance, Compute the mean and variance of the following discrete ...

Compute the mean and variance of the following discrete probability distribution. Where X=2, and P(x)=.5. Where X=8 and P(X) .3. Where X=10 and P(X) =.2.

Determine the inflation rate in germany between 1992-2010, Inflation in Ger...

Inflation in Germany Once we have monthly data on a price index we can calculate inflation. In most nations, the percentage change in price index during one month is small. So,

DSGE model, I need to run DSGE model of one published paper of another auth...

I need to run DSGE model of one published paper of another author. Just I would like to request to run that paper using MATLAB(Dynare). And send me the dynare code.m 100 words acce

How to calculate participation rate., 7 people have jobs, 3 want to work bu...

7 people have jobs, 3 want to work but are not, and there are 20 adults. What is the participation rate?

Components of trade policy, COMPONENTS OF TRADE POLICY: External secto...

COMPONENTS OF TRADE POLICY: External sector reforms beginning with 1991 included dismantling of  trade restrictions along with tariff rationalization, a move towards current a

Firm make profits of losses with this quantity, The Marginal Costs (MC) for...

The Marginal Costs (MC) for a firm is given by the function MC=50x. Please find the Marginal Revenues (MR) for each of the following scenarios (if appropriate). Then, find the prof

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