The amount of percentage points of GDP of consumers are willing to give up to reduce this economic concept by one unit is known as the sacrifice ratio.
The amount of percentage points of GDP of consumers are willing to give up to reduce this economic concept by one unit is known as the sacrifice ratio. Due to the substitution bias and the introduction of new goods, the Consumer Price Index tends to overstate the effects of this concept. Expectations of this it can cause menu and shoeleather costs, and its relationship with the nominal and real interest rates is described by the Fisher equation. Varieties of this include the "demand-pull" and "cost-push" types, and the Phillips curve depicts an inverse relationship between the rate of unemployment and it. FTP, name this term which describes the increase of prices in the economy.
The amount of percentage points of GDP of consumers are willing to give up to reduce this economic concept by one unit is known as the sacrifice ratio.
{inflation}