If the price increase persists inflation occurs. (3) Open – Inflation: This is a type of inflation generated by an increase in money supply without a corresponding increase in the volume of goods and services, therefore, too much money chases fewer goods resulting in a rise of the general price level. This could be brought about by excessive bank lending or over-expansion of currency by the Central Bank. 2.3 CAUSES AND EFFECTS OF INFLATION The major causes of inflation widely identified include: i. Excessive deficit-financing and rapidly increasing government expenditure.
INFLATION Submitted to Prof. Zeshan Ahmer Partyyyyyyyycipants Tables for life preface Introduction What is Inflation? Inflation is the rate at which the cost of goods and services rises over time. When inflation rises, the value of the money goes down because consumers aren't able to buy as much as they previously could with that same money. (Brooks) Increase in the price level of goods and services in a specific economy over a period of time is Inflation. The monetary value or real value of a currency falls because of the increase in prices.
When people realize that prices will keep on soaring, it causes a sense of irrationality and panic. Hence, resulting in them spending their money now rather than later, with the sense of intellect that they would be saving money. Likewise, if people require purchasing extra, they will take loans. The banks, knowing people will do so, increase their interest rates. Moreover, it decreases unemployment rates.
Most of the developing countries suffer from poverty and the less of access to their basic needs. Poverty is a condition when the people’s basic needs as food, clothing, education, shelter and health care aren’t met. Most of the developing countries are affected by this phenomenon, over three billion of people live on less than 2.50 dollars
(Developed country) SOUTH KOREA (Developed country) MALAWI (Developing country) EQUATORIAL GUINEA (Developing country) Similarities and Differences There are many differences between developed countries and developing countries. For example, a developed economy has a higher life expectancy rate compared to a developing economy, where the life expectancy rate is significantly low. Developed countries have a high level of literacy for both male and female, where developing countries face a very low literacy rate as well as gender inequality. Developed countries have limitless safe water supplies, whereas developing countries have limited unreliable and dirty water
Each decision opens some opportunities but also closes off or makes other opportunities more difficult. As we approach retirement the decisions we make help decide what options are available to us for our life after work. Is the cost of our desired lifestyle in retirement achievable being a major concern. The first two questions the why
Today, the world is becoming more and more closely linked. Trade has increased and the movement of people between countries is greater than ever before. However, billions of people still live in poverty, and in many places, the gap between rich and poor is widening. This essay will look at the arguments for and against wealthy or rich countries helping poor countries as well as mentioning some examples and some causes of extreme poorness. WHAT DOES IT MEAN FOR A NATION TO BE RICH?
As the price level of health, housing, medical and other basic necessities increases, it causes the cost of living standard to increase in a country. Employees would have to utilize their savings to match the shortfall. Savings gets depleted. Purchasing power decreases. If the government does not intervene, there could be negative repercussions as seen in The Great Depression,
Which will result that the supply cannot expand any more to meet demand which prices increase due to the resulting shortage. (rode, 2013) COST-PUSH INFLATION occurs the general prices increases due to the increase in the production costs. Economic policies can influence demand policy also wages and taxes while the policies have less contribution over cost push inflation. HYPERINFLATION when the inflation rate is so high that it can be described as being out of control and the increase in the overall price levels is rapid and substantial. Hyperinflation is usually accompanied by an increase in money supply that will result in the currency of the country becoming worthless.