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INFLATION - Coggle Diagram
INFLATION
is
price increases
goods
ecomomy
services
the purchasing power
decreases
of money
unit of tomorrow money buys less
than a unit of today's money.
The Central Bank
must ensure
that prices are not raised
controls inflation
by means of the interest rate
Before reccession
there is inflation
Causes of inflation
Incentive to consumption
due to excess money
circulating
in the economy
Generating greater demand
Pandemic Covid-19
everyone locked up at home
no products
rising prices
energy crisis
Russia no longer supplies other countries
because of the war
rising prices
job offer
resulting in lower production
higher product prices
Population behavior
were susceptible
they bought more products than they need
aggregate demand increased
measures to control inflation
Central banks encourage savings
raise interest rates
risk causing
weakens other currencies of other countries
recession