Second: Social effects of inflation: inflation is an economic phenomenon reflects the effects directly on the society and these effects are represented in the following:
1- The first manifestation of inflation is the rise in prices of goods and services on a continuous progressive and this increase as a result of several reasons, which is:
A. The state is working to increase government spending through the issuance of cash leads to an increase in the quantity of money is not offset by an increase in the production of goods and services so the prices of goods and services increase so the number of poor people in the community is increasing.
B. The increase in production costs (increasing domestic and foreign raw materials prices, rising production costs ) leads to a rise in prices.
C. Overflowing in overall demand for goods and services without a corresponding increase in the overall supply of goods and services levels.
2- higher prices reflect negatively on the purchasing power of people with fixed-income and retired employees, The prices increase and their incomes do not.
3- inflation and the high prices lead to leaking a number of children from poor families from their schools and they are forced to working to meet the needs of daily living.
4- Community who faces the phenomenon of inflation is increasing the number of unemployed in it, and it will be a poor community even if it has economic resources because the continuous inflation.
The relationship between inflation
Sport utility vehicles increase in popularity, thus increasing the demand for the workers who make them.
1. What is inflation? Inflation is an increase in prices for goods and services (What is Inflation?).
According to the Federal Reserve Bank of San Francisco (2002), inflation can be defined as the increase in the level of prices and a decrease in the purchasing power of money. In short, money loses its value due to the increase of the prices of goods and services. Products that can experience this are food, clothing, electronics, raw materials, and more. The reasons for these occurrences are complex since there are two types of inflation, and each has its respective causes.
In economics, with the inflation is a rise in the actual general level of prices of goods and services in an economy from over a period of time. When the general price level rise, such as each of the units currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power4 per unit of money. This therefore means that with the loss of real value in the medium of exchange and unit of account within the given and actual economy. With a chief measure for example and the price of inflation is within the given inflation rate, the annualised percentage change within a general price index over time in which is normally the consumer price index.
Inflation occurs when the general price level of goods and services have increased in a period of time. It is a measurement that signals the current economic situations and whether there is a potential economic growth.
Inflation is the sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. (Investopedia) During periods of inflation, the prices of products and services will rise. There are several reasons why an economy would see a rise in inflation. Decrease in supplies, corporate deciding to charge more, and consumer confidence are some of the reasons why an economy would see the inflation rate increase. Consumer confidence is when consumers gain more confidence in spending due to a low unemployment rate and wages being stable. Decrease in supplies is when consumers are willing to pay more for a product or service is that is slowly becoming unavailable due to a decrease in supplies. Corporate decisions are when the corporations basically decide
Inflation is an increase of the currency of a country by issuing more printed money.
C: Increase in the levels of corporations in the country and increase in the levels of production of the people.
D. there is no way to determine what has happened to supply and demand with this information
3-It causes the problem of unemployment because people have no enough chances and fields to work in the already populated area.
These lower wages lead to hardships. As the consumer spends less, demand decrease, and jobs
Firstly Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability. Inflation can either be negative or positive; it could mean making products more expensive. There are a number of effects of inflation that can
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.
Inflation is a sustained increase in the general level of prices for goods and services
Inflation happens when there is more and more money being created, this lessens the value of each individual dollar. Inflation also lowers the standard of living because people decide to buy now and pay later, this also creates higher inflation. Inflation causes the business cycle to