Inflation refers to the continuous and sustained growth in the general price level. As the price level rises, it reduces the purchasing power or value of cash balances held by the consumers to reduce. This causes real income to decline.

A certain level of inflation is desirable in an economy to promote growth but a high rate of inflation is harmful. Inflation can be of several types such as

Demand-pull inflation
Cost-push inflation

There are several measures used to calculate inflation, for instance, the consumer price index. To correct inflationary pressures, a government uses contractionary fiscal and monetary policy.

6 0

3 years ago

The managers of fazer technologies inc. created a report of the profits earned and the losses incurred by the company over the l

Slav-nsk [51]

Analytical Report is the answer buddy

5 0

2 years ago

Penny Company made an inventory count on December 31, 2018. During the count, one of the clerks made the error of counting an in

Salsk061 [2.6K]

Answer: Overstated, no effect, Overstated

Explanation:.

Since there's a double counting, this will lead to the overstating of the inventory which brings about an increase in the asset.

On the other hand, there's no effect on the liability. Lastly, the stockholder's equity is overstated as well as there's an increase the net income due to the overstated inventory.

4 0

2 years ago

A child receives a dime for weeding dandelions from the yard. sometimes he gets paid after pulling as few as three, sometimes he

ddd [48]

Variable-ratio reinforcement, in which the rate of reward varies over time.

8 0

2 years ago