What is inflation? What are the causes of inflation? Is inflation desirable and

Question

What is inflation? What are the causes of inflation? Is inflation desirable and what can be done to control inflation in a market economy? What is the Consumer Price Index (CPI)? How has the CPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source. What is the Producer Price Index (PPI)? How has the PPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the PPI for this period and cite your source. What is the Consumer Expenditure Survey (CE)? How has the Survey behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CE for this period and cite your source. What do the measures above tell us about consumer behavior? Have incomes changed enough to offset the inflation since 2000? What can we predict about future inflation? What are the implications of these measures for government economic policies?

Explanation / Answer

Inflation is the general rise in price level of the goods and commodities in the market There are generally two causes of inflation Cost push or demand pull Cost push inflation arises when the cost of production increases because of which the prices increases. Demand Pull inflation arises when the demand for a good exceeds its supply. A small inflation is generally desirable in the economy because this leads to the increase in the standard of iving of the people. As their income increaes their willingness to spend on a particular product should increase too. But an inflation where the increase in prices increases more than the increase in income is not desirable for the economy. There are too many questions to be answered in this. :( Please distribute the questions over other parts in seperate parts. :( Do rate me please. Require ratings.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.