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Australian Inflation Rate Essay

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Over the course of a year, if the value of the Australian Dollar were to decrease 10%, the Australian inflation rate were to increase 5%, the price of oil was to increase to $100 per barrel and the Australian unemployment rate were to jump to 10%, I would predict people would start jumping out of windows. The suicide rate would skyrocket and there would probably be a political upheaval some sorts. Maybe these are overstatements but who knows, maybe they are understatements.
I would expect that under compounding conditions like this that anarchy would become prevalent. One would expect crime to increase rapidly as well. It is up to the government and other agencies to prevent these types of things from happening. Of course all of the above statements are …show more content…

Maslow’s Hierarchy of Needs teaches us that food and water fall into the Physiological bucket, meaning they are needs for survival.
While food and water are theoretically inelastic, the types of food and water would be very sensitive to changes in price. As mentioned before, brand names and luxury food items would essentially become obsolete in this type of economy.
Of course, that is assuming that, that type of recession would be long lasting. Children would not eat Kellogg’s Nutri Grain cereal, but instead would be eating cheaper cereal like Aldi’s Weetabix’s.

Theft and looting would rise and has the potential to become an issue for this industry. Typically, these things increase during times of major economic hardships (i.e. the Australian recession in the early 90’s). In the hypothetical economy above, you can expect some mayhem and disorder.
The above type of economy would set people back to the level of wanting to be hunters and gathers again. Ok, that is an exaggeration because the above type of economy has happened in the past, but not overnight. I say all of this to say that things would get bad, really

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