Which of the following scenarios indicates that an economy which might be in a recession? Select the correct answer below: O unemployment is rising employment is rising real GDP is rising there is no cyclical unemployment

Q: What is the European Court of Justice

A: Justice: It refers to an idea on morals and regulation that implies that individuals act in a manner…

Q: how can we better monetize environmental concerns to protect what quality we have left?

A: Environmental economics: It refers to investigating the economies of the two sides of average…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.