PPT-Describe the economic impact of inflation on business

Describe the economic impact of inflation on business 106 Understand economic indicators to recognize economic trends and conditions INFLATION A persistent increase in the average price level in the economy. A2 Business Studies. Aims and Objectives. Aim:. Understand firm strategy in the business cycle.. Objectives:. Explain the effects of different firm strategies in the business cycle.. Analyse whether economic growth is good or bad for businesses. INFLATION OR DEFLATION,. TELL ME IF YOU CAN…. WILL WE BE ZIMBABWE OR. WILL WE BE JAPAN?. INFLATION IS A GENERAL INCREASE IN PRICES OVER TIME, OR A GENERAL DECREASE IN THE VALUE OF MONEY. “I JUST BOUGHT FOUR TIRES. India – A Threat to Growth and Development?. A2 Macro – January 2014. Indian Population. Population still rising but more slowly. Growth and Inflation in India. Inflation in India is among the highest in the Group of 20 leading economies. November 2015. Costs and prices. Chart 4.1. . CPI . inflation projected to rise by the end of the year. . Bank staff’s projection for near-term CPI inflation. (a). (. a) The . red diamonds show Bank staff’s central projection for CPI inflation in July, August and September . History and Present Status. . Motivated by . the book. :. Breakthrough Beyond the Edge of the World. Valery . Rubakov. Alexei . Starobinsky. Andrei . Linde. Vyacheslav. . Mukhanov. Vladimir . Lukash. To understand what . inflation is. To identify how . inflation might . affect businesses. To evaluate how businesses might respond to . inflation. Starter: Find out how much the average salary was in . Toson. , . DeRamos. , Hill. Problemo. Inaccurate recording practices are misleading students.  . Grade inflation practices are being used in higher education institutions such as IV league schools and trade schools. Grade deflation can result in students being denied post-secondary learning opportunities. . History and Present Status. . Motivated by . the book. :. Breakthrough Beyond the Edge of the World. Valery . Rubakov. Alexei . Starobinsky. Andrei . Linde. Vyacheslav. . Mukhanov. Vladimir . Lukash. 2-2. Economic Conditions . Change. The Business Cycle. All economies experience good and bad economic periods. This economic shift between good and bad economic conditions is called the . business cycle. by. . Dr. Daniel . Thorniley. 19 September 2016. Central Scenario - 2017 economic outlook . (oil averages $46-55). GDP. 1.3%. Inflation (year-end). 5.5%. Inflation (average). 6.2%. Consumer spending. Unanticipated inflation – some people are hurt; some people gain. . For example, borrowers are helped by unanticipated inflation while lenders are hurt. . However, even anticipated inflation results in costs for the economy.. Inflation – a general increase in the price level. Deflation – a general decrease in the price level. Hyperinflation – extraordinarily high inflation. (Germany 1923 – prices doubled roughly every 2 days). 09. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. The Business Cycle. Alternating increases and decreases in economic activity over time. Phases of the business cycle. 8. C H A P T E R. ECONOMIC GROWTH. An . increase in real GDP. over some time period. An . increase in real GDP per capita. over some time period. Growth as a Goal. Arithmetic of Growth. Rule of 70.