More impressively, this is after adjustment for the loss of purchasing power because of inflation, which caused the general price level to increase 13 times during the 1871-1997 period.
32.
It the cash is kept in fixed deposit accounts, the interest earned will offset, to a certain degree, the adverse effects of the rapid rise in the general price level.
33.
Deflation is a sustained decrease in the general price level ( negative inflation rate ) resulting in a sustained increase in the real value of money and other monetary items.
34.
It can also be generalized to explain variables across the economy, for example, total output ( estimated as real GDP ) and the general price level, as studied in macroeconomics.
35.
Nevertheless, even if we could ensure significantly more rapid productivity growth than we have seen recently, there are valid reasons for wishing to avoid ongoing declines in the general price level,
36.
According to Reuters food prices have gone up by 11.7 % in the first 11 months of 2010 whereas the general price level ( inflation ) has risen only by 1.9 %.
37.
However, the real purchasing power of the RM11, 000 is 20 per cent less at RM8, 800 because the general price level ( rate of inflation ) has risen 20 per cent.
38.
In monetary economics, the "'quantity theory of money "'( "'QTM "') states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply.
39.
At the level of an economy, theory and evidence are consistent with a positive relationship running from the total money supply to the nominal value of total output and to the general price level.
40.
Healthy productivity gains by companies and many businesses still operating below full throttle " to date have checked any sustained acceleration of the general price level and should continue to do so for a time,"
