INFLATION:
In the 1970s the prices of most things Americans buy more than doubled. Such a general increase in prices is called inflation. Prices of selected goods may increase for reasons unrelated to inflation: the price of fresh lettuce may rise because unseasonably heavy rainfall in California has ruined the lettuce crop, or the price of gasoline may rise if the oil-producing countries set a higher price for oil. During inflation, however, all prices tend to rise. Over the last 400 years there have been many periods of inflation. In the 16th century, when the Spaniards began bringing back gold and silver from the New World, prices in Western Europe moved upward as the supply of money increased. During the 19th century prices tended to go downward as food and raw materials became cheaper. After major wars such as the Napoleonic Wars and World Wars I and II, prices again moved upward. In the 1950s and '60s a so-called creeping inflation occurred, when the general price level in the United States and Western Europe rose by an average of 1 to 5 percent each year. In the 1970s inflation increased until it reached as much as 13 percent a year in the United States. Many countries have suffered from inflation more than has the United States. Israel had inflation of more than 100 percent a year in the early 1980s, meaning that the cost of living more than doubled every year. In Argentina inflation was greater than 400 percent in 1975 and averaged more than 100 percent each year from 1976 to 1982. The most remarkable inflation in modern times was the German hyperinflation of 1923, when people went to the store with wheelbarrows full of money to buy a few groceries. A similar hyperinflation occurred in Hungary after World War II. Inflation has been defined as "too much money chasing too few goods." As prices rise, wages and salaries also have a tendency to rise. More money in people's pockets causes prices to rise still higher so that consumers never quite catch up. Inflation can go on continuously year after year so long as the money supply continues to increase. Continued inflation affects people in diverse ways. Those who live on fixed incomes, or those whose incomes increase very slowly, suffer most from inflation because they are able to buy less and less. Those who lend money when prices are lower may be paid back in dollars of reduced purchasing power.
It is important that the culture is thoroughly researched so that it can be portrayed accurately. The historical context in which the culture is being described can affect the way the audience relates to the topic (Hall 272-273). The narrator tells the audience how his feelings towards his grandparents changed after he realized the truth about the world he lived in. The mistreatment of Africans and African Americans because of their skin color is shown throughout the novel. Even though some of the acts against them in the novel were horrendous, they were wronged far worse in the past. “I am not ashamed of my grandparents for having been slaves. I am only ashamed at myself for having at one time been ashamed. About eighty-five years ago they were told that they were free, united with others of our country in everything pertaining to the common good, and, in everything social, separate from the fingers of the hand. And they believed it. They exulted it. They stayed in their place, worked hard, and brought up my father to do the same” (Ellison 15). This novel takes places in the 1930’s and so the time period that narrator could be speaking about is the end of the civil war. The civil war ended slavery and made all African Americans free. Eighty-five years ago they were led to believe that they were just as free and would be treated as the whites had. They were told that they were equal with the whites when it came “the common good” and “everything social.” The dominant culture lied to them because it knew that if it made the African Americans feel welcome and feel part of the group, that it could manipulate them into acting how it wanted them to. African Americans wanted to show that they were equal to their white counter parts so they did exactly as they were told and made sure that they never fell out of line. It was
Empirical literature examining the determinants of inflation has mostly viewed it as a monetary phenomenon. This viewpoint basically stems from Milton Friedman’s famous dictum that inflation is always and everywhere a monetary phenomenon. However, the conjecture of Friedman has recently come under attack. In fact, there appears to be virtually no correlation between money growth and inflation since the early 1980s. This leads to evolution of the argument known as Fiscal Theory of Price Level (FTPL). To capture the nonmonetary aspects of inflation, a number of economists investigate the main political, institutional and economic determinants of inflation across countries and over time. For instance, Aisen and Veiga (2006) conclude that political instability leads to higher inflation. Their study reveals that an additional government crises and a cabinet change which are used as proxy for measuring political instability raise inflation rate by 16.1% and 9.1% respectively. In another study, Aisen and Veiga (2008) extend their work to further analyze the effect of political instability, social polarization and the quality of institutions on inflation volatility. They argue that politically unstable and socially polarized countries with weak institutions are more exposed to political shocks that result in discontinuous monetary and fiscal policies which in turn result in higher inflation volatility. The intuition is that rising inflation instability creates frictions on market which reduces economic efficiency and causes the prevailing price in the economy to deviate from the price which would otherwise have been determined in presence of stable price level. They also provide evidence that greater independence of the Central Bank leads...
In the late 1960's and 1970's, accelerating inflation prompted the development of improved measures of prices and inflation-adjusted output.
Watching a young child grow from infancy to toddler hood, we marvel at the amount of learning that has allowed her to understand her expanding environment. Those early years provide the basis for language, physical dexterity, social understanding, and emotional development that she will use for the rest of her life. All of this knowledge is acquired before she even sets foot in school! This child has taught herself by gathering information and experiencing the world around her. This is an example of constructivism. Constructivism emphasizes the importance of the knowledge, beliefs, and skills an individual brings to the experience of learning. It recognizes the construction of new understanding as a combination of prior learning, new information, and readiness to learn. Individuals make choices about what new ideas to accept and how to fit then into their established views of the world (Brooks & Brooks, 1995).
Webbing, student generated ideas are written down randomly, in order in which they are introduced.
The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The formula for the Price Elasticity of Demand (Ep)
“The ascent of money has led to the ascent of man.”. The greatest question many have sought to answer is the creation vs. evolution debate. How did we get here? Were we created or did we evolve randomly?
Money Supply plays an important role in macroeconomic analysis, especially in selecting an appropriate monetary and fiscal policy. Considerably, I am yet to come across theoretical work that has been done on this topic (analysis money supply and its impact on other variable i.e. inflation, interest rate, real GDP and nominal GDP). However some other topics similar to this one have been done by AL-SHARKAS, Adel, where he uses the same technique and models on the topic ‘out put response to shocks to interest rate, inflation and stock returns. His work investigates the relationship between the Jordanian output and other macroeconomics variables such as inflation, interest rate and stock returns. His paper employs the VAR approach method of Lee (1992) to analyze the relation and dynamic interaction among variables. The IRF and the FEVD from the VAR model are computed in order to investigate interrelationships within the system. The empirical results indicate that Interest rate and inflation are weakly negatively correlated and real stock returns and inflation is very weakly positively correlated for all leads and lags are negatively associated. Furthermore, the response of output (IPG) to shocks in stock returns (R1) is strongly positive up to the first 6 periods and after which the effect almost dies. This indicates that the relationship between stocks returns (R1) and real activity (IPG) is positive and inflation has a negative impact on IPG (Adel A. Al-Sharkas 2004).
The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.
However, more goes into controlling inflation than just the interest rate. A big factor in Brazil’s inflation rate is their infrastructure. When domestic production grows, Brazil faces transportation issues which causes the offer to stagnate. Once it stagnates the demand grows and puts an upward pressure on prices and therefore increasing inflation. In order for Brazil to control their inflation there needs to be a significant and constant development in infrastructure. Infrastructure plays big role because Brazil is one of the largest countries in the world in terms of area and population. A higher population leads to higher demand for certain goods and puts a lot of pressure on the inflation rates and contributes to why inflation historically
Price elasticity of demand illiterates the change in quantity demanded as price changes. Elasticity is the responsiveness of how a simple change in one variable can escalate another change in particular the change in demand and supply. The formula for calculating the price elastic demand is Price Elasticity of Demand = % ∆ In Quantity Demand / % ∆ In Price. Relating to Price elasticity demand an example I can give is assuming that the prices of electricity went up by 50% and purchases of electric went down by 25% by using the formula above we can calculate that the price elasticity of electric is Price Elasticity = (-25%) / (50%) = - 0.50. Therefore for every percentage electric increases the quantity purchases decreases by half a percentage. Price elasticity is usually negative which is stated in the example as electric prices goes up the quaintly of electric demanded will drop. In addition it means that it cooperates with the law of demand as price increases quantity demand decreases. The understanding of price elasticity is very important to know how the relationship between the price and demand of the product and how it can determine the products demand. If the quantity demanded changes a lot while the price changes a little bit that products is elastic this can mainly be products which have alternatives and products which can change consumers mind if price changes by even 1p. For example if the price of paracetamol A increases the quantity demanded will fall when consumers swap to the cheaper paracetamol B. No change in price and no change in demand this product is inelastic. For example as the price of petroleum i...
The term constructivism has been used to explain everything from school reform to teaching styles, and most importantly related to a learning theory. As you can imagine the term Constructivism has the potential to develop many misconceptions since it lacks a universal definition. “Constructivism is an important theory of learning that is used to guide the development of new teaching methods”(Baviskar, Hartle & Whitney, 2009, p.541). The framework of constructivism is built upon the understanding that “learning is an active process that is student centered in the sense that, with the teachers help, learners select and transform information, construct hypothesis’, and make decisions”(Chrenka, 2001, p.694). It is important to understand that when speaking about constructivism we are referring to a learning theory not teach...
Constructivism is a somewhat new, but up-and-coming ideology that is progressing through education. In order to properly understand constructivism, one must understand the history. Then, building upon the history one begins to understand its progression through education. Then, building upon that knowledge we can begin to see the applications of constructivism in the modern classroom. In the process of establishing the layout this paper, a method of constructivism, also known as scaffolding, was shown. Scaffolding is the process of establishing what a learner's base knowledge is and then teaching them in a method that relates and builds upon that. This leads into the broader idea of Constructivism, which the view of learning is based upon the learner produces knowledge and form meaning based upon their experience. ("Piaget's Theory of Constructivism", 2006)
Monetarism theorises that inflation is associated with the money supply of an economy. For instance, taking after the Spanish triumph of the Aztec and Inca domains, huge measures of gold and particularly silver streamed into the Spanish and other European economies. Subsequent to the cash supply had quickly expanded, costs spiked and the estimation of cash fell, adding to financial breakdown.
Inflation is one of the most important economic issues in the world. It can be defined as the price of goods and services rising over monthly or yearly. Inflation leads to a decline in the value of money, it means that we cannot buy something at a price that same as before. This situation will increase our cost of living.