Where On The Business Cycle Is Inflation The Highest?

If inflation is a cyclical phenomena that rises and falls in lockstep with the pace of economic activity, the inflation rate should be highest just before a cyclical peak and lowest during the recession and following recovery period. When did inflation reach its peak? The highest year-over-year inflation rate recorded since the formation of the

Where On The Business Cycle Is Inflation The Highest? Read More »

Is GDP A Stock Or Flow?

Without knowing which variables reflect stock and which variables represent flows, economic progress cannot be adequately defined or understood. Flow variables make up the majority of macroeconomic variables provided by statistical organizations. The value of final goods generated by the economy in a given year is measured by Gross Domestic Product (GDP). GDP is a

Is GDP A Stock Or Flow? Read More »

How Inflation Helps The Economy?

Inflation is and has been a contentious topic in economics. Even the term “inflation” has diverse connotations depending on the situation. Many economists, businesspeople, and politicians believe that mild inflation is necessary to stimulate consumer spending, presuming that higher levels of expenditure are necessary for economic progress. How Can Inflation Be Good For The Economy?

How Inflation Helps The Economy? Read More »