Economics is a dynamic subject in the field of social science that explores various values, distribution of resources, money and the market. However, with such complex concepts, many students struggle to achieve good academic marks. In this case, seeking economics assignment help can benefit them. Also, they can receive comprehensive guidance and navigate through their problems with ease.
In this article, you will learn about what inflation is and its types, such as cost inflation, stagflation and others. In addition, you will explore measures to analyse it. This will simplify intricate economic concepts. So, let's begin with a simple definition of inflation.
What is Inflation & Its Types
In economics, inflation signifies a general rise in prices in an economy ( or a country) over a period of time. The general prices of a currency rise, which leads to reduced purchasing power of the consumers. In short, the prices rise, so people do not possess the capability to buy as they used to.
You may ask, Why is that? It can be caused by a rising demand for products or a rise in the supply of money. According to economists, a small amount of inflation is normal in developing economies; however, too much can lead to an unstable economy and reduce the savings of individuals.
The following are the types of inflation :
Demand Pull Inflation
It happens when the need for services and goods exceeds the supply. If you are in an economy where everyone spends more, then there might not be enough products to meet the demand. This leads to businesses raising their price. For example, you may notice higher prices for popular cars and electronics.
Cost Push Inflation
This happens when the cost of production of goods increases. If the cost of raw materials, energy, or wages rises, companies raise prices to cover those costs.
For instance, if there is a rise in the price of oil, then the food delivery would also be expensive.
Built-In Inflation
Built-in inflation happens when companies raise their prices because workers ask for higher wages. So, companies raise the prices of their products. This cycle, where workers ask for more pay and companies raise prices, keeps increasing.
Hyperinflation
Hyperinflation is an extremely high rate of inflation that even makes everyday goods unaffordable. It happens in a country with an unstable economy where the government prints excessive amounts of money to pay debts.
In addition, it leads to a rapid increase in prices, and there is no value to your money. Also, it leads to severe economic problems such as a shortage of food and others.
Stagflation
It is a rare situation where the economy experiences high prices, high unemployment and stagnant demand at the same time. In this case, both no jobs and money problems occur together, and this makes it hard for any government. Moreover, people also lose their jobs.
In your economic assignments, you are required to cite sources properly. So, you can use an expert-crafted tool like Harvard Referencing Generator to cite error-free references and submit a well-polished document.
How to Measure Inflation for Your Economic Assignment
It is critical to measure inflation in your assignment and look at how prices have changed over time. You can use several methods to measure it. One way is to task changes through CPI and PPI.
There are other methods too, which will be discussed in the subsequent sections. This will help you with a better comprehension of the subject and help you craft excellent work.
Consumer price index
The consumer price index measures how much prices of daily goods and services have risen over time. It is calculated by looking at a basket of goods and services. Then, you need to compare them from one year to the next.
Many times, you may find these concepts complicated to include in your work. So, the expert team at Instant Assignment Help can provide you with comprehensive support and tailor your project to your needs.
Producer Price Index
The producer price index calculates the change in prices that producers pay for raw goods before they reach consumers. It looks at prices from the viewpoint of producers. Moreover, you can use it to explain how it affects the overall economy and prices.
Final Thoughts
To sum up, economics is a subject that deals with various values, markets and money. It requires an in-depth knowledge to approach economic papers. This is why students can seek reliable economics assignment help to navigate through complex concepts and theories.
In this article, you learn about inflation. It is a situation where there is a general rise in the costs of services and goods. Moreover, it restricts the power of purchasing as items are expensive due to high demand.
Then, you saw the types of it. In addition, you explored their analysis in your project using CPI, PPI and deflator. These concepts are vital to understanding various economies.
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