There are a number of different measures of inflation such as the CPI, the RPI and the PPI. The most widely used of these is the CPI but even this is, at best, a crude estimate of changes in the general price level. Different regions and socio-economic groups will have different rates of inflation and to target one specific estimate may create difficulties for some groups and for the economy as a whole.
Nevertheless, if the authorities were to totally ignore inflationary pressures in the economy then a state of hyper-inflation could easily develop and this could wreak even greater havoc on the economy
queen babito answered the question on July 9, 2018 at 07:21
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Explain the difference between a rise in the general price level and a rise in the rate of inflation.
(Solved)
Explain the difference between a rise in the general price level and a rise in the rate of inflation.
Date posted:
July 9, 2018
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Evaluate the view that economic growth should no longer be the main objective of government policy
Date posted:
July 9, 2018
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Critically examine the response of the UK Government and the Bank of England to the recent credit crunch.
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Critically examine the response of the UK Government and the Bank of England to the recent credit crunch.
Date posted:
July 9, 2018
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Analyse the impact of the credit crunch upon aggregate demand in the UK
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Analyse the impact of the credit crunch upon aggregate demand in the UK
Date posted:
July 9, 2018
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Economic theory assumes that consumers will buy more of a product when price falls and less when price rises. Evaluate the view that this assumption...
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Economic theory assumes that consumers will buy more of a product when price falls and less when price rises. Evaluate the view that this assumption is unrealistic
Date posted:
July 9, 2018
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Analyse how a change in demand or supply in one market may have effects on other markets
Date posted:
July 9, 2018
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Explain what is meant by the market clearing (equilibrium) price.
Date posted:
July 9, 2018
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Explain what is meant by productive and allocative efficiency
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July 8, 2018
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Critically examine the impact of globalisation on Less Developed Countries (LDCs)
Date posted:
July 8, 2018
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Critically examine the view that a deficit on the current account of the balance of payments is of no economic significance.
(Solved)
Critically examine the view that a deficit on the current account of the balance of payments is of no economic significance.
Date posted:
July 8, 2018
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(Solved)
Explain the difference between fixed and floating exchange rates.
Date posted:
July 8, 2018
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Date posted:
July 8, 2018
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Date posted:
July 8, 2018
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Date posted:
July 8, 2018
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Evaluate the policies that governments could use to deal with market dominance and the abuse of monopoly power
Date posted:
July 8, 2018
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July 8, 2018
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July 6, 2018
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Explain what is meant by the distribution of income.
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July 6, 2018
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Date posted:
July 6, 2018
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(Solved)
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Date posted:
July 6, 2018
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