Topic 17 Inflation Introduction To Inflation Economaldives Error Inflation is when most prices in an entire economy are rising. however, there is an extreme form of inflation called hyperinflation. this occurred in germany between 1921 and 1928, and more recently in zimbabwe between 2008 and 2009. in november 2008, zimbabwe had an inflation rate of 79.6 billion percent. Inflation is a general and ongoing rise in the level of prices in an entire economy. inflation does not refer to a change in relative prices. a relative price change occurs when you see that the price of tuition has risen, but the price of laptops has fallen. inflation, on the other hand, means that there is pressure for prices to rise in most.
Topic 17 Inflation Introduction To Inflation Economaldives Error 9.1: introduction to inflation. figure 9.1 big bucks in zimbabwe this bill was worth 100 billion zimbabwean dollars when issued in 2008. there were even bills issued with a face value of 100 trillion zimbabwean dollars. the bills had $100,000,000,000,000 written on them. unfortunately, they were almost worthless. In this video, we'll go dive deep into one of the biggest economic issues that affects prices over time: inflation. we'll explore how inflation causes a decl. Inflation is a general and ongoing rise in the level of prices in an entire economy. inflation does not refer to a change in relative prices. a relative price change occurs when you see that the price of tuition has risen, but the price of laptops has fallen. inflation, on the other hand, means that there is pressure for prices to rise in most. Inflation decreases purchasing power. when inflation occurs, it means that a consumer needs more currency to make the same transactions as before. this is why, as discussed in chapter 5, we need to adjust prices across time for inflation. something that cost $1 in 1980 may easily cost $3 or $4 today.
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