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प्रश्न
Explain the impact of inflation on producers in the short run.
थोडक्यात उत्तर
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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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Effects of Inflation
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संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
The debt which yields income to the government is called as ______.
Examine any three adverse or evil effects of inflation on production.
Identity the correct statement from the following:
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
State running inflation impact on fixed income groups.
Mention the effect of inflation on the value of money.
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
Discuss the effects of inflation on production.
