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Dani  Videa
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Dani  Videa
Created by Dani Videa about 9 years ago
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InflationGeneral rise inprices in theeconomyFor example whensometimes productslike food are tooexpensiveIt's given by percentsCausesEffects on businessesDemand pull- inflationToo much people want tobuyBut companies don'thave the capacityPricesincreaseCost-push-inflationWhen companies spendtoo much on productionThey have to rise their prices tokeep profit marginsWage-price spirals andexpectationsIt isn't always badBut after a 5% risebusiness shouldprepareIncreased costsUncertaintyConsumer reactionsInternationalcompetitivnessDeflationHow is it measured1) Representative products areput together as a "market basket"EffectsReducing costsStagnant economy2)The price of this totalbasket is compred over time3) This result in an index % of theamount the prices have changedDouble click this nodeto edit the textClick and drag this buttonto create a new node