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: How to Calculate, Types, Effects of Economic Policy
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: Meaning, Causes, Impacts
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%
Deflation: Concepts, Causes, Impacts, and Possible Solutions
What's it: Deflation is the state of the economy when the aggregate price level falls. This is the opposite of inflation, and we also call it negative inflation. Deflation is different from disinflation. Disinflation refers to a slower rate
Cost-Push Inflation: Meaning, 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. To maintain profit margins, rising costs force
Hyperinflation: Meaning, Causes and Impacts
Hyperinflation is a period when the inflation rate is exceptionally high. The percentage can be more than 50% per month, and in extreme cases, prices can double in one day. It harms the economy. Money becomes worthless, and people find it
Capacity Utilization: Its Relationship With Profitability, Aggregate Demand and the Economy
What's it: Capacity utilization refers to the extent to which existing production capacity is used. It may refer to a company's machinery or production facilities. Or, we might find it to describe an industry or an economy aggregate. What is
Inflation: Types, Importance, How To Calculate, Policies to Affect It
Inflation is an increase in the general level of prices of goods and services in the economy over time. If the price of one item or several items rises, it is not inflation. If inflation exists, the prices of all goods and services increase, as