Concept Introduction:
Deflation: When the average price level decreases continuously for a given interval in an economy then it is referred as deflation. It leads to a recession in an economy. Deflation is not healthy for an economy.
Inflation: When the price of any good increases continuously for an interval of time it is called inflation. It leads to a decrease in the
Hyper-inflation: When the inflation rate is very high and is usually for a longer duration then it is termed as hyper-inflation. It has a very harsh impact on an economy as it leads to depression.
Inflation Tax: It is a tax which is bared by the asset or the income holders due to an increase in the rate of inflation. It is a kind of
The formula to calculate inflation tax is,
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Chapter 16 Solutions
MACROECONOMICS W/ ACHEIVE ACCESS LL
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
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