Deflation increases the value of money over time. During the times of deflation, prices in a country will have the persistent tendency to decrease.
Posts published in “THE ECONOMY”
Deflation is the trend of decreasing prices of the products in the economy. Deflation changes the value of money – it increases it.
Government will issue policies aiming to reduce aggregate demand and lower costs to tackle inflation. These policies will impact on businesses.
What are major causes of inflation to occur in a country? Let’s take a look in details at these four causes of inflation in the economy.
Inflation matters because it affects not only individual people but also all businesses. If there is rapid inflation, it is causing fast growth in prices.
We already know from the previous articles introducing inflation that the ideal rate of inflation in a country is to rise by 2% per annum.
Inflation changes the value of money over time – it lowers it. One of the government’s economic objectives is to keep inflation low and stable.
In order to minimize the costs of unemployment, the government can prevent unemployment in many ways. Here are detailed instructions regarding those policies.
There are many costs of unemployment. High unemployment will bring costs to both the society and be a personal cost to all individuals affected by it.
In fact, different types of unemployment are caused by many different factors, with some of them even caused by more than one factor. Let’s take a look in details.
Unemployment exists when people who are willing and able to work cannot find a job. Specifically, there are seven different types of unemployment.
Another important government economic objective is to keep low unemployment in the country to maintain and improve the country’s economic status.
An economic recession has serious consequences for most businesses and the whole economy. A recession is a period of six months or more of declining GDP.
The country’s economy usually does not grow at the steady and constant rate, but tends to grow at different rates over time which leads to The Business Cycle.
One of the most important government economic objectives is to maintain sustainable and high economic growth in the country.