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Are you sure you want to delete this answer? Changes in the price of a product have to do with supply and demand, but changes in overall price level inflation has to do with the supply of money. Unless there is some kind of supply shock like a mass flood that ruins all the grainsupply generally won't go down for bread.Adult Singles Dating In Olathe, Colorado (CO
Since years ago, the cost of production for bread has masssivly decreased because of industrialization specialization, economies of scale, economics of scope, etc. Macroeconomic theory can be used to answer this question because it has to do with the Fed and Open Market Operations.
When the Fed cuts the discount rate, reduce the the reserve requirement, or buys US government securities, it increases the money supply which causes inflation. In summary, money supply is the key. Now, there is no constant increase in inflation from year to year.
There can actually be deflation, so it all depends. Inflation is a rise in the general level of prices of goods and services in a given economy over a period of time.
It may also refer to the rise in the prices of some more specific set of goods or services it is never because of a shortage. Inflaton is a general and sustained rise in the aggregate price level and is a phenomenon mainly of the 20th century.
For hundreds of years prices in the UK remained stable but the first world war witnesses a spike in inflation and econmic mismanagement has led to many hyperinflations since then Though the demand for bread is much higher now than ever it was hundreds of years Women looking nsa Lasker owing to population growth, agricultural improvements have raised yields signicantly in the period since the industrial revolution - and now there is abundance relative Looking for long term and more plz read demand in the UK so no long term upward pressure on prices.
Olng Common Agricultural Policy of the EU has helped to encourage producion of most staple farm produce and overall the Loiking price of bread price relative to household income has fallen over recent deades.
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