Sentences with phrase «general price level»

From then on, rather than being solely a function of the money supply it was held that the general price level was determined by the money supply multiplied by the velocity of money in accordance with the famous Equation of Exchange (M * V = P * Q) **.

In its original and most basic form it held that the general price level would change in direct proportion to the change in the supply of money, but to get around the problem that what was observed didn't match this theory it was subsequently «enhanced» by adding a fudge factor called «velocity».

And since price is determined by demand relative to supply, if the demand for money can't be expressed mathematically then it is pointless trying to come up with an equation that models the purchasing power of money (a.k.a. the general price level).

Inflation is also a function of the supply and demand for money, meaning that producing relatively more dollars causes each dollar to become less valuable, making the general price level rise.

GoldMoney research director Alasdair Macleod has revisited the old correlation in economics between the general price level and interest rates, «Gibson's paradox,» which economists long debated, or at least did before it seemed to break down in recent decades.

This picture of cents per share change is actually a bit less positive because increases in the general price level eat into DPS and the percentage change decreases as the prior year dividend grows.

This, conceptually, is a measure of the trend in the general price level which reflects the broad balance between aggregate demand and supply in the economy.

The Acting Government Statistician Baah Wadie said the monthly change rate for August 2017 was negative -LRB--) 0.2 percent, which meant that the general price level went down by 0.2 percent between July 2017 and August 2017.

The consumer price index measures the change over time in the general price levels of goods and services that households require for the purpose of consumption.

The Consumer Price Index (CPI) measures the change over time in the general price level of goods and services that households acquire for the purpose of consumption, with reference to the price level in 2012, the base year, which has an index of 100.

An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services.

Unlike a conventional bond, whose issuer makes regular fixed interest payments and repays the face value of the bond at maturity, an inflation - indexed bond provides principal and interest payments that are adjusted over time to reflect a rise (inflation) or a drop (deflation) in the general price level for goods and services.

Typically hard assets are an excellent hedge against inflation, meaning their value rises as the general price levels for goods and services increases (known as Consumer Price Index or CPI).

This view can also be represented by the so - called «quantity theory of money,» which relates the general price level, the total goods and services produced in a given period, the total money supply and the speed (velocity) at which money circulates in the economy in facilitating transactions in the following equation:

Inflation is typically described as a persistent increase in the general price level, such as in the consumer price index.

So why did the monetary base increase not cause a proportionate increase in either the general price level or GDP?

Inflation is the rate of increase of the general price level of all goods and services.

A slang expression meaning an extended period of time during which the general price level of a market rose.

When the general price level rises, each unit of currency buys fewer goods and services.

An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services.