Economics

What Is The Difference Between Inflation And Stagflation?

Stagflation is a word coined by economists to describe an economy with high unemployment, inflation, and a slow or stagnant rate of economic growth. Stagflation is something that authorities all over the world aim to avoid at all costs. The population of a country are affected by high rates of inflation and unemployment amid stagflation.

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What Happens When There Is A Recession In The Economy?

During a recession, the economy suffers, individuals lose their jobs, businesses make less sales, and the country’s overall economic output plummets. The point at which the economy officially enters a recession is determined by a number of factors. In 1974, economist Julius Shiskin devised a set of guidelines for defining a recession: The most popular

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Does Spending Increase Inflation?

Demand-pull When customers have more disposable income, inflation happens. People who have more money to spend demand more products and services. Demand can be boosted by expansionary fiscal and monetary policies, consumer expectations of future price increases, and marketing or branding. Cost-pull When supply declines, a shortage occurs, resulting in inflation. Producers increase their pricing

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