by Simon Ng | Jun 13, 2018 | Economics Tuition, Inflation, JC Economics Essays, Macroeconomics |
Discuss why governments are concerned to keep up the rate of inflation at a low level. Introduction Inflation is a situation where there is a sustained and inordinate increase in the general price level when there is excess demand without or with an inadequate...
by Simon Ng | Jul 25, 2016 | Economics Tuition, Inflation, JC Economics Notes, Macroeconomics |
First, a high level of inflation introduces business uncertainty and hence reduces investors’ incentive to invest. Specifically, hyperinflation disrupts the derivation of cost of production, making it difficult to set price which discourages trading activities and...
by Simon Ng | Jul 16, 2016 | Economics Tuition, Inflation, JC Economics Notes, Macroeconomics |
Given that housing is an asset to home-owners, the rise of the price of assets will cause the individuals to raise the price of their factor services as they peg their factor cost to the price of the housing prices. The price of assets will rise due to the inflow of...
by Simon Ng | Aug 20, 2015 | Economics Tuition, Inflation, JC Economics Notes, Macroeconomics |
Cost-push inflation occurs when there is a rise in cost of production which will lead a fall in the aggregate supply that will lead to an excess demand condition, contributing to increase in price level. When the cycle becomes cyclical, it will develop as wage-price...
by Simon Ng | Aug 20, 2015 | Economics Tuition, Inflation, JC Economics Notes, Macroeconomics, Unemployment |
When there is a rise in oil prices, the cost of production is increased which will lower aggregate supply, resulting in an excess demand condition, thus raising general price level. Hence, cost-push inflation arises. An oil price hike leads to inflationary pressures....
by Simon Ng | Aug 10, 2015 | Economics Tuition, Inflation, JC Economics Essays, Macroeconomics, Unemployment |
Singapore experienced a quarterly growth rate of -0.7% from April to June 2012. However during the same period, inflation rate remained high at about 5%. “Inflation is harmful to an economy and hence it should be the priority of the Singapore government to...
