Is inflation more severe than deflation? Why? Or why not?
Inflation in simple terms is rise of general price in goods and services for a given period of time .
deflation on the other hand is the general decline of price of good and services in which there is a contraction in the supply of money
for any economy,inflation cannot be ignored and at some level it is also good because it increases national output ,employment and income but deflation always come with disadvantages like during the deflation which causes national income to decline, take the economy backward in a depression state etc.
so inflation is not more severe than deflation
What’s the correlation between interest rates and inflation and deflation. Why is there an increase or decrease and when is there a higher demand for loans etc
Describe the difference between inflation, deflation, disinflation, and hyper inflation.
What is the goal of controlling inflation & deflation?
If inflation is -10% (that is, deflation), then it is reasonable to expect: Select one: a. the real interest rate to be less than 10% b. the real interest rate to be at least 10% c. the real interest rate to be zero d. the nominal interest rate to be -10%
Inflation, Disinflation, and Deflation - Discovering Data The accompanying graph plots the size of the monetary base in the United States over time. ALFRED il - Monetary Base: Total Vintage: 2017-12-28 4,000,000 3,600,000 3,200,000 2,500,000 2,400,000 2,000,000 1,600,000 1,200,000 800,000 400,000 2002 2004 2005 2006 2010 Millions of Dollars 2012 2014 2016 Source: Board of Governors of the Federal Reserve System (US) Customize | Download Data | FRED - Economic Data from the St. Louis Fed c. Why is it...
24. A reduction in therate of inflation is called: a. Deflation b. Disinflation c. Hyperinflation d. Cost-push inflation. 25. Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was a. Increased by 1.67 percent b. Increased by 2 percent. c. Increased by 8 percent. d. Decreased by 0.6 percent.
What is the economic principle that guides efforts to analyze the costs of inflation and deflation?
Man I fail to understand why it’s disinflation and not deflation especially when we apply the inflation rate formula...so can anyone tell me why? 6. The price index in 2013 was 120 and the price index in 2014 was 110 Therefore, there was inflation eflation disinflation inflation E. hyperinflation TO
During the Great Depression, the economy experienced inflation disinflation deflation hyper-inflation During the Great Depression, output growth increased at a slower than normal rate was negative for 4 quarters before turning positive was negative for 4 years before turning positive didn't decline as much as during the Great Recession While there is no "standard" for distinguishing an economic depression from a recession, in general economists would look at the magnitude of which of the following real GDP decline unemployment increase...
1) Inflation – Chris Downs Much effort is made to keep inflation down. How severe a problem is inflation in reality? 2) Explain why a rise in the money supply will be unlikely to affect the real interest rate in the long run.