Explain why inflation degrades the information content of prices.
Price is determined by the relative demand and supply of a good. Therefore, price reflects the scarcity of a good. In the case of inflation, there is a sustained increase in the general price level. So, in the case of inflation, the price changes without a change in the relative demand or supply.
The Adjustment of Stock Prices to Information About Inflation? in 250 words
Based on cost of inflation, Agree or disagree with this post and why When prices rise, buyers pay more for the things they want. On the other hand, the sellers are getting more money for the things they sell. Many people earn money by selling their services whether its labor or goods. Their rise in income from the inflation evens out with the inflation of prices when they buy things. You also have menu costs, the cost of changing the...
Explain why in some countries with high rates of inflation, the inflation rate exceeds the rate of money growth?
4. The text notes that changes in oil prices can affect the inflation-unemployment outcome. Explain what effect changes in oil prices may have on these two variables. (with graph)
6. Fresh pineapple contains the enzyme bromelain that degrades proteins I. The directions on a gelatin (protein) say not to add fresh pineapples, but UVthat you can add canned pineapple that has been heated to high temperature. Use the figure to explain why. Fresh pineapples can be used as a marinade to tenderize tough meat. Explain why?
explain in words why the PCE deflator inflation estimates will be lower than estimate will be lower than estimates of inflation using the CPI
Why COVID-19 being consider the main factors of the inflation? And also discuss that, why oil prices decline doesn’t have any effect on the prices of commodities?
(i) Explain why a policy to reduce an inflation rate is very costly to a country? (ii) Can the disinflation strategy be achieved without any cost to the country? Explain?
Why do economists believe that inflation in the long run is entirely a monetary phenomenon? Explain fully.
s. Why are prices iuportaut in a markct ecopomy? Explain. (4 pts)