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Dani Videa
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more than 1 year ago
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inflation
trump
impaktadopochtli
grado superior
Created by
Dani Videa
about 9 years ago
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3938452
mind_map
2016-02-19T09:13:01Z
Inflation
General rise in
prices in the
economy
For example when
sometimes products
like food are too
expensive
It's given by percents
Causes
Effects on businesses
Demand pull- inflation
Too much people want to
buy
But companies don't
have the capacity
Prices
increase
Cost-push
-inflation
When companies spend
too much on production
They have to rise their prices to
keep profit margins
Wage-price spirals and
expectations
It isn't always bad
But after a 5% rise
business should
prepare
Increased costs
Uncertainty
Consumer reactions
International
competitivness
Deflation
How is it measured
1) Representative products are
put together as a "market basket"
Effects
Reducing costs
Stagnant economy
2)The price of this total
basket is compred over time
3) This result in an index % of the
amount the prices have changed
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3938452
mind_map
2016-02-19T09:13:01Z
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