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There is nearly a perfect, 1:1 relationship between inflation and the money supply. Generally, printing more money is the source of inflation.
If a country experiences high economic growth i.e. higher GDP, it is likely that there would be much more demand in the economy (due to people getting richer). The higher the GDP is, the higher demand would be. Therefore, it wold shift the aggregate demand curve to the right whereas short run aggregate supply can't respond immediately to the change creating inflation (general and sustained rise in price levels)
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Is the relationship between the inflation rate and changes in the quantity of money macro or micro economics?
macro
Causes and effects of price rise in India and measures to overcome it?
The effect of inflation in India is an unbalanced relationship between the amount of money earned and the cost of regular goods. This relationship can be controlled by bank authorities by limiting inflation.
What is the relationship between current account deficit and inflation management in India?
The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Describe and give reasons for the relationship that exists between RGDP inflation and umeployment?
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
What is relationship between inflation and recession?
The relationship between inflation and recession is that a recession will cause inflation to go down. The reason for this is due to their being less money being spent due to the recession.
Is the relationship between the inflation rate and changes in the quantity of money macro or micro economics?
macro
Causes and effects of price rise in India and measures to overcome it?
The effect of inflation in India is an unbalanced relationship between the amount of money earned and the cost of regular goods. This relationship can be controlled by bank authorities by limiting inflation.
What has the author M Thomas Paul written?
M. Thomas Paul has written: 'A re-examination of the long run relationship between money supply and inflation in India' -- subject(s): Inflation (Finance), Money supply
What is the relationship between current account deficit and inflation management in India?
The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
What is the relationship and proportioned powers that exists between the buyer and the supply?
The monetarist explanation of inflation operates through the Quantity Theory of Money, MV = PT where M is Money Supply, V is Velocity of Circulation, P is Price level and T is Transactions or Output. As monetarists assume that V and T are determined, by real variables, there is a direct relationship between the growth of the money supply and inflation. ChaCha again!
Describe and give reasons for the relationship that exists between RGDP inflation and umeployment?
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
What is the relationship between inflation and deflation and Cross of Gold speech?
Help me
What is the relationship between inflation and deflation and the Cross of Gold speech?
Help me
Is there any relationship between issue of plastic currency and inflation?
lolz, no no0b.
What is the Phillips curve?
In economics it's the inverse relationship between inflation and unemployment.
