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In the general economic language, any rise in prices is called inflation, but it is necessary to make a clear distinction between the causes determining a single non-continuous rise in prices and other circumstances that may cause a continuous and widespread growth of them. In the evolution of real economy various events may occur that are able to cause a rise in prices on the whole market. These are called inflation “shocks”. In order to analyze these issues more deeply, we will suppose that the economy is in a long-term macroeconomic balance and currency exchange rate operates under a flexible regime. Also, in the initial state, the price level is relatively constant and gross domestic product (GDP) is at its potential level.
Toba Daniel. 2017. \u201cMarket Disequilibrium and Ways to Correct Them by the Macroeconomic Policies\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 17 (GJHSS Volume 17 Issue E4): .
Crossref Journal DOI 10.17406/GJHSS
Print ISSN 0975-587X
e-ISSN 2249-460X
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Total Score: 102
Country: Romania
Subject: Global Journal of Human-Social Science - E: Economics
Authors: Toba Daniel, Simion Dalia (PhD/Dr. count: 0)
View Count (all-time): 187
Total Views (Real + Logic): 3499
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Publish Date: 2017 09, Sat
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In the general economic language, any rise in prices is called inflation, but it is necessary to make a clear distinction between the causes determining a single non-continuous rise in prices and other circumstances that may cause a continuous and widespread growth of them. In the evolution of real economy various events may occur that are able to cause a rise in prices on the whole market. These are called inflation “shocks”. In order to analyze these issues more deeply, we will suppose that the economy is in a long-term macroeconomic balance and currency exchange rate operates under a flexible regime. Also, in the initial state, the price level is relatively constant and gross domestic product (GDP) is at its potential level.
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