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प्रश्न
Explain the impact of inflation on producers in the short run.
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उत्तर
- During inflation, the producers and businessmen gain in the short period.
- Usually the cost of production does not rise as fast as the price of their products. And so there an artificial margin of profit.
- As against this, they may be adversely affected in the long run. If the price level goes on increasing, the total consumption (demand) of their product would fall. This reduced consumption/demand will ultimately reduce their profit.
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संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
Explain how taxes can bring about equality in income distribution.
Examine any three adverse or evil effects of inflation on production.
______ are worst affected during the period of inflation.
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
Which of the following section of the society is most adversely affected by inflation?
State running inflation impact on fixed income groups.
Why do producers gain in the short run during inflation?
How does inflation affect the distribution of income?
Discuss the effects of inflation on production.
