PPT-Inflation: Its Causes, Effects, and Social Costs

Chapter 5 of Macroeconomics 8 th edition by N Gregory Mankiw ECO62 Udayan Roy Nominal Variables In Ch 3 we saw a longrun theory of several real variables Y . Inflation. Inflation . is . defined. as . an . increase in the overall level of prices.. When the general price level rises, each unit of currency buys fewer goods and services. inflation is also a decline in the real value of money—a loss of . To understand what . inflation is. To identify how . inflation might . affect businesses. To evaluate how businesses might respond to . inflation. Starter: Find out how much the average salary was in . William H. Shrank, M.D., M.S.H.S.. April 15, 2016. The data . show . that drug costs increased substantially in 2014 into 2015. 12. PERCENTAGE GROWTH IN HEALTH SPENDING BY CATEGORY. 0.1. 2.2. 0.2. 2.3. of Casino Gambling: . . A Perspective from the U.S.. . Douglas M. Walker, Ph.D.. Associate Professor of Economics. College of Charleston. Macao Polytechnic Institute . Global Gaming Management Seminar Series. Economics. Unemployment. Economist’s definition:. Those of working age, who are without work, but who are available for work at current wage rates.. Two . measures . of unemployment.. Claimant . count. William H. Shrank, M.D., M.S.H.S.. April 15, 2016. The data . show . that drug costs increased substantially in 2014 into 2015. 12. PERCENTAGE GROWTH IN HEALTH SPENDING BY CATEGORY. 0.1. 2.2. 0.2. 2.3. Unanticipated inflation – some people are hurt; some people gain. . For example, borrowers are helped by unanticipated inflation while lenders are hurt. . However, even anticipated inflation results in costs for the economy.. Price Level & Real Income. As long as wages rise with price levels, inflation doesn’t cause harm standard of living. Real . Wage = . Wage . rate .  100. Price index. Real . Income = . Income . Life-Cycle Cost Analysis: The Basics. LCCA Analysis Period, yrs. Net. Present. Value, $. Initial . Construction Costs. Rehabilitation Activity Costs. Maintenance Activity Costs. Salvage Value. Discount. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 9b – Inflation. TOPICS. Definition of . Inflation?. What is . a Price Index. ?. Calculate the Inflation Rate using an Index. causes of hyper-inflation. costs of hyper-inflation. Key . Differences Between Inflation and Deflation. When . the value of money decreases in the world market, it is inflation, while if the value of money rises, then it is deflation.. . Inflation is a situation in which the general price level rises or the value of money falls.. Types of Inflation:. On the basis of the rate of increase in price level we have three types of inflation,. learn in . this Module:. The economic costs of inflation. How inflation creates winners and losers. Why policy makers try to maintain a stable rate of inflation. The difference between real and nominal values of income, wages, and interest rates. Dr. V. Anantha Nageswaran. Introduction. Costs of extremely high inflation easy to see. If prices rise rapidly enough, money stops being a useful medium of exchange. Costs of low, expected inflation are difficult to see.