Inflation

Written By IMAGINATION on Minggu, 21 Agustus 2011 | 15.34


Inflation is the increase in the general price level of goods and services within a certain period.
General rise in prices of most goods and services in a market which resulted in decline in the currency. Inflation occurs when demand rises faster than supply. Another sense, that is too much money supply that is used to buy goods that are few in number.

Inflation type
Inflation may result in increased production costs. For example, if fuel prices rise, and transportation costs to produce goods goes up. The company is burdened with higher costs due to high transportation costs raise the basic price to cover the high cost. This situation is when companies raise prices because costs have also risen so-called cost push inflation (cost push inflation). So also with a demand pull inflation, which means if the price of goods and services tertari knaik due to consumer demand is the increase in the tinggi.Inflasi general price level of goods and services within a certain period.
Inflation type

Inflation may result in increased production costs. For example, if fuel prices rise, and transportation costs to produce goods goes up. The company is burdened with higher costs due to high transportation costs raise the basic price to cover the high cost. This situation is when companies raise prices because costs have also risen so-called cost push inflation (cost push inflation). So also with a demand pull inflation, which means if the price of goods and services tertariknaik due to consumer demand is high.

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