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21 July, 12:57

The percentage change in the price level from one time period to the next

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Answers (2)
  1. 21 July, 13:05
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    The correct answer is inflation rate

    Explanation:

    Inflation is a situation where is so much money in circulation but there are few goods to be bought, hence too much pursuing too few goods and services.

    The rate at which the prices increase in respond to the problem of inflation is known as inflation rate.

    Inflation is a must-have in any economy in order to encourage producers to produce more, but a single digit inflation rate is what is desirable not double digit such 25% which translates into hyper-inflation
  2. 21 July, 14:26
    0
    inflation rate

    Explanation:

    The inflation rate is defined as the rise in the general price level during a certain time period, usually one year. it is usually calculated using the consumer price index (CPI) which measures the weighted average price of a basket of goods.

    Many economists try to explain why inflation occurs, and the answers generally vary depending on the school of economics that they follow, but most agree that inflation is the result from an increase in the money supply that makes aggregate demand grow more than aggregate supply. The reasons behind the increase in the money supply are the questionable issues in this case.

    Inflation is a necessary evil, because without inflation an economy cannot grow, but too much inflation results in a loss of the purchasing power of a currency and causes severe economic problems. Generally an inflation rate between 1-2% is considered healthy and necessary.
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