Inflation
the general upward trend in prices for goods and services over time.
Inflation
When the general price levels in a country are falling, but it can affect individual items as well.
Deflation
The study of the individual consumer, firm, or market.
Microeconomics.
This occurs when the cost of producing goods and services increases, forcing businesses to raise prices to maintain their profits.
Cost-push inflation
This can happen when a central bank increases interest rates or prints less money.
Decreased money supply.
When all other things stay the same(Latin word)
Cetirus Paribus
if everyone wants the same limited-edition sneakers, the price goes up.
Demand-pull inflation
prices fall because businesses can produce more goods with less cost.
Technological advances
People who are known as risk-takers primarily risk their own money to solve problems.
Entrepreneurs
With your own words tell me the impact of inflation.
Inflation reduces your purchasing power, meaning you can buy less with the same amount of money. It can also affect your standard of living if your income doesn't keep pace with rising prices.
In your own words explain a benefit of deflation.
In the short term, deflation can benefit consumers because their money is worth more.
Supply curves move ______ to the right, while demand curve moves ______ to the right
Positively and Negatively
Central Bank's Role in Inflation
They use interest rate adjustments as a tool to control the amount of money in circulation.
Central Bank's Role in Deflation
Monetary policy Central banks can lower interest rates, which makes it cheaper for people to borrow money and increases the money supply.
An increase in the number of tattoo parlors increases the supply of tattoos. (a factor that shifts the supply curve)
Change in the number of suppliers.