Essay On Problem Of Rising Prices

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Essay On Problem Of Rising Prices Duke Fuqua Mba Application Essays

It has no ill effect until the ratio of debt to gross domestic product approaches 90%.Increase in wages, monopoly pricing, natural disasters, government regulations, and currency exchange rates often decrease supply vis-à-vis demand.Today, the world is suffering from congestion and high pollution problems which are growing steadily.When the dollar declines relative to the value of foreign currencies, the prices of imports rise. The federal government executes expansionary fiscal policy.It expands the money supply through either deficit spending.To consider the reasons, first of all, the rise in petrol rates can be directly affect on the middle class people because large amount of the average standard people prefer to use private vehicles as compare to the public transport system which does not provide comfort and leisure to them.Moreover, this step can bring inflammation in cost and consequently it may hard for commeners to purchase other daily needs regarding food, accommodation and electricity whereas rich people do not consider these issues .There are two main causes of inflation: Demand-pull and Cost-push.Both are responsible for a general rise in prices in an economy. Demand-pull conditions occur when demand from consumers pulls prices up.Having more money to spend allows people to want more products and services.Expansionary fiscal and monetary policies, consumer expectation of future price increases, and marketing or branding can increase demand.


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