Imports impact the economy in several aspects. For example, at the micro level, imports affect competition by increasing supply in the domestic market. Consequently, there is more pressure on prices and profitability in the domestic market.On the
Inflation
Inflation Rate: Calculations, Types, Impacts and Solutions
What's it: The inflation rate is the percentage change in the economy's prices of goods and services over a certain period. While inflation tells us about a situation where the prices of goods and services increase or decrease, the inflation
Disinflation Explained: A Slower Inflation Rate – Causes, Impacts and Examples
What's it: Disinflation is a situation in which the price level increases at a slower rate of growth. In other words, inflation is still positive but lower than the previous period. For example, suppose the inflation rate slowed from 3% inflation in
Deflation Explained: Dangers Beyond Falling Prices – Causes, Impacts, Solutions
What's it? Deflation is the state of the economy when the aggregate price level falls. It is the opposite of inflation, which we also call negative inflation.Deflation is different from disinflation. Disinflation refers to a slower rate of
Cost-Push Inflation: Rising Prices and Stalled Growth – Causes, Effects, Solution
Cost-push inflation refers to inflation caused by rising production costs. It can happen because the input costs, such as wages, raw materials, energy, and financial costs, become more expensive.Rising costs force producers to raise the selling
Hyperinflation: The Devastating Effects of Out-of-Control Prices – Causes, Example, Impacts
Hyperinflation is a period when the inflation rate is exceptionally high, often exceeding 50% per month. In extreme cases, prices can double in a single day. This rapid price increase erodes the value of money at an alarming rate. Imagine your
Inflation: Understanding the Impact on Your Wallet and Economy [+ Policies to Control]
Inflation is a constant force at play in the economy, affecting everything from your weekly grocery bill to the investment decisions of major corporations. It refers to the gradual increase in the general price level of goods and services over time.