Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.


ECO403 GDB Fall 2020 Solution / Discussion Last Date: 22-12-2020

The prices of food in the country have risen radically throughout the year. The rise in the prices of wheat flour, sugar, vegetables and pulses are stimulating inflation in the country. There are several reasons behind the increasing food inflation in Pakistan. A main reason of rising inflation is that the economy of Pakistan had been undergoing broad-based inflationary forces during the past years due to the execution of stabilization policies intended to reduce the deficits in current and fiscal account. The pandemic of COVID-19 disrupted food supply chains which also caused high rates of inflation. The decrease in the production of major and minor food crops, predominantly wheat caused a huge decline in the supply and leads to rise in inflation.

Requirement: Logically discuss the effects of high inflation on the economy of Pakistan? You are required to discuss only two effects.

due date is 22.12.2020

Views: 310

Replies to This Discussion

Share the GDB Question & Discuss Here....         

Stay touched with this discussion, Solution idea will be uploaded as soon as possible in replies here before the due date.

Eco403 GDB
Solution:
There are Four Type Inflation Affect Occur:
Consumer Purchasing Power Decline:
As the result of rise in prices that is inflation prices of goods/foods shoots up and consumers with fixed income drastically affected by this.
Declined in National Saving:
As rising inflation issues adverse affect on the consumers from all walk of the life. Specifically fixed income section. Such consumers spends more of their income, so they have fewer amount to save-meaning on aggregate as is level of savings at national level reduce.
Fall in Investment:
Saving turns into investment, such as saving deposit and other opportunist. But low level of savings leads to low investment
Cost Prices Increased:
As cost prices increased than investment decreases and uncertainty increases.

RSS

Looking For Something? Search Below

VIP Member Badge & Others

How to Get This Badge at Your Profile DP

------------------------------------

Management: Admins ::: Moderators

Other Awards Badges List Moderators Group

© 2021   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service