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- Inflation
Economic and management sciences
Grade 8
Economic cycle
Module 5
Inflation
Assessment standard 1.5:
Inflation
WHEN YOU HAVE COMPLETED THIS SECTION, YOU WILL BE ABLE TO EXPLAIN INFLATION AND THE REASONS FOR FLUCTUATIONS IN THE INFLATION RATE.
- Inflation is a continuous and considerable INCREASE in the general price level resulting from monetary causes which cause the buying power of money to decrease. It needs to be emphasised that an increase in the price of a single item or the once-only rise in the price of a commodity is not regarded as inflation. For price rises to be qualified as inflation, they have to be of a general nature and cover a wide range of commodities, and they must also be considerable. Such an increase in prices will mean that our money cannot buy as much as it previously could. You will, in fact, be worse off.
- As inflation implies a general increase in price levels, it is important to analyse reasons for such an increase.
- Our study of the economic cycle has revealed that the goods stream must always be equal to the currency stream. When the currency stream increases without a simultaneous increase in production/supply of goods, prices will rise because of an increase in the greater demand (resulting from people having more money for purchases.)
- Consumers purchase the following food items for R100,00
- 1 bag of potatoes
- 1 tray of tomatoes
- 1 bag mealie meal
- 1 box avocadoes
- According to the above model, the average price of each of the listed items is R25 (R100 divided by the 4 items). If the currency stream would somehow increase by R60, the average price of the items would rise to R40 per item [(R100 + R60) divided by the same 4 items]. The increase in the amount of money has therefore resulted in a rise in the price.
- Closely related to this, is the situation where people spend more money on goods and services than the economy is able to provide. In this instance the demand for goods and services rises at a faster rate than the rate at which the units of production are able to deliver their products. This means that prices are forced upward by the greater demand from
- consumers. The situation in which “more money” chases after “fewer goods” is known as DEMAND-PULL INFLATION.
- The prices of goods can also rise because of continuous and considerable wage, benefit and tax increases which, for instance, force up the running costs of enterprises or producers. To be able to maintain his profit margins, the producer will simply have to increase the prices of his products.
- If price increases result from continuous increases in production costs, we have COST PUSH INFLATION, because the increases in running COST place PRESSURE on the selling PRICE and push it UP. Think about the influence of trade unions with their sometimes exorbitant demands for wage increases (i.e. input costs), and the on-going increases in fuel prices (another input cost) because of exchange rate fluctuations.
Activity 1
INFLATION
The information quoted below was published in a newspaper during August 2002. Read the article and answer the questions that follow:
Questions & Answers
how does Neisseria cause meningitis
is the branch of biology that deals with the study of microorganisms.
studies of microbes
Louisiaste
when we takee the specimen which lumbar,spin,
How bacteria create energy to survive?
Bacteria doesn't produce energy they are dependent upon their substrate in case of lack of nutrients they are able to make spores which helps them to sustain in harsh environments
_Adnan
But not all bacteria make spores, l mean Eukaryotic cells have Mitochondria which acts as powerhouse for them, since bacteria don't have it, what is the substitution for it?
Muhamad
they make spores
Louisiaste
what is sporadic nd endemic, epidemic
the significance of food webs for disease transmission
Abreham
food webs brings about an infection as an individual depends on number of diseased foods or carriers dully.
Mark
explain assimilatory nitrate reduction
Assimilatory nitrate reduction is a process that occurs in some microorganisms, such as bacteria and archaea, in which nitrate (NO3-) is reduced to nitrite (NO2-), and then further reduced to ammonia (NH3).
Elkana
This process is called assimilatory nitrate reduction because the nitrogen that is produced is incorporated in the cells of microorganisms where it can be used in the synthesis of amino acids and other nitrogen products
Elkana
Examples of thermophilic organisms
Give Examples of thermophilic organisms
Shu
advantages of normal Flora to the host
Prevent foreign microbes to the host
Abubakar
they provide healthier benefits to their hosts
ayesha
They are friends to host only when Host immune system is strong and become enemies when the host immune system is weakened . very bad relationship!
Mark
cell is the smallest unit of life
Fauziya
cell is the smallest unit of life
Akanni
cell is the structural and functional unit of life
Hasan
is the fundamental units of Life
Musa
what are emergency diseases
There are nothing like emergency disease but there are some common medical emergency which can occur simultaneously like Bleeding,heart attack,Breathing difficulties,severe pain heart stock.Hope you will get my point .Have a nice day ❣️
_Adnan
define infection ,prevention and control
Innocent
I think infection prevention and control is the avoidance of all things we do that gives out break of infections and promotion of health practices that promote life
Lubega
Heyy Lubega hussein where are u from?
_Adnan
which site have a normal flora
Many sites of the body have it
Skin
Nasal cavity
Oral cavity
Gastro intestinal tract
Safaa
skin,Oral,Nasal,GIt
Sadik
How can Commensal can Bacteria change into pathogen?
Sadik
How can Commensal Bacteria change into pathogen?
Sadik
what are the advantages of normal Flora to the host
Micheal
what are the ways of control and prevention of nosocomial infection in the hospital
Micheal
part of a tissue or an organ being wounded or bruised.
Wilfred
what term is used to name and classify microorganisms?
Binomial nomenclature
adeolu
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Source:
OpenStax, Economic and management sciences grade 8. OpenStax CNX. Sep 11, 2009 Download for free at http://cnx.org/content/col11040/1.1
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