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ABSOLUTE POVERTY: The amount of income a person or family needs to purchase an absolute amount of the basic necessities of life. These basic necessities are identified in terms of calories of food, BTUs of energy, square feet of living space, etc. The problem with the absolute poverty level is that there really are no absolutes when in comes to consuming goods. You can consume a given poverty level of calories eating relatively expensive steak, relatively inexpensive pasta, or garbage from a restaurant dumpster. The income needed to acquire each of these calorie "minimums" vary greatly. That's why some prefer relative poverty.
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                           DISINFLATION: A decline in the inflation rate. With disinflation, prices continue rising, just not as fast. Numerically speaking, disinflation occurs if the inflation rate over three consecutive years is 10 percent, 6 percent this year, and 4 percent. Disinflation, a reduction in the inflation rate, is not the same as deflation, which is an actual decline in the price level. Should disinflation continue, presumably due to anti-inflationary monetary or fiscal policies, then the average price level might eventually decline, making the transition from disinflation to deflation. | Inflation Rate |  |
Disinflation generally comes into popular use when inflation has been relatively high and troublesome for a period of time and people are looking for any sign of relief. As such, a decrease in the inflation rate is taken as good news. However, disinflation is actually a relatively common phenomenon associated with business cycles. As this chart of inflation rates over the past few decades illustrates, inflation invariably declines during business-cycle contractions (shaded areas).During the contraction of the early 1990s, disinflation brought the inflation rate down from about 6 percent to just over 2 percent. An even more dramatic example of disinflation resulted from the contraction of the early 1980s. The inflation rate declined from over 14 percent to under 4 percent. In fact, this particular contraction was created with contractionary monetary policy by the Federal Reserve System with the expressed goal of reducing the high inflation rates that characterized the 1970s, that is, to achieve disinflation.
Recommended Citation:DISINFLATION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2021. [Accessed: March 3, 2021].
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Today, you are likely to spend a great deal of time going from convenience store to convenience store trying to buy either a wall poster commemorating next Thursday or a pair of gray heavy duty boot socks. Be on the lookout for gnomes hiding in cypress trees.
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Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
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