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MACROECONOMIC PROBLEMS: Undesirable situations that exist in the macroeconomy, largely because one or more of the macroeconomic goals are not satisfactorily attained. The primary problems are unemployment, inflation, and stagnant growth. Macroeconomic theories are designed to explain why these problems emerge and to recommend corrective policies.
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COST-PUSH INFLATION: Inflation of the economy's average price level induced by decreases in aggregate supply that result from increases in production cost. This type of inflation occurs when the cost of using any of the four factors of production (labor, capital, land, or entrepreneurship) increases. In general, higher production cost means the economy simply can't continue to supply the same production at the same price level. If buyers want the production, they must pay higher prices. The higher cost "pushes" the price level higher. You might want to compare cost-push inflation with demand-pull inflation. See also | inflation | aggregate supply | production cost | factors of production | labor | capital | land | entrepreneurship | household sector | business sector | government sector | foreign sector | aggregate expenditures | demand-pull inflation | production possibilities | aggregate market | long-run aggregate supply curve | aggregate demand curve | shortage | price level |
Recommended Citation:COST-PUSH INFLATION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: January 26, 2023].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: cost-push inflation
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ASYMMETRIC INFORMATION Information is not equally available to everyone. Asymmetric information results because efficient information search inevitably stops short of compete information. Some people obtain more benefits from information than others, are willing to incur higher search costs, and thus end up knowing more. Or they incur lower information search costs and have easier access to the information. In a market, sellers tend to have more information about the good than buyers. Asymmetric information gives rise to adverse selection, moral hazard, and the principal-agent problem. These problems can be lessened through signalling and screening.
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RED AGGRESSERINE
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Today, you are likely to spend a great deal of time at a flea market seeking to buy either a coffee cup commemorating the 1960 Presidential election or a how-to book on fixing your computer, with illustrations. Be on the lookout for the happiest person in the room.
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The word "fiscal" is derived from a Latin word meaning "moneybag."
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"It has been my philosophy of life that difficulties vanish when faced boldly. " -- Isaac Asimov
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AVT
Ad Valorem Taxes
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