Sales: Sales: Support: Support:
Academic writing services  
 
Custom written essay Book report Research paper Dissertation Resume and CV Editing and proofreading  
main menu
discounts
discounts
By ordering custom paper you get
  • 24/7 Support
  • Over 100 professional US Writers
  • 300 words per page
  • Flexible discount system
  • FREE revision (within 2 days)
  • Anti-Plagiarism Software Check
we accept
sample essays
Accounting Essays
Admission Essays
Analysis Essays
Art Essays
Biography Essays
Biology Essays
Book Review Essays
Business Essays
Case Studies Essays
Cause and Effect Essays
Character Analysis Essays
Communication Essays
Communication and Media Essays
Compute Technologies Essays
Consideration Essays
Controversial Essays
Description Essays
Economics Essays
Education Essays
Evaluation Essays
Explanation Essays
History Essays
Job Essays
Law Essays
Management Essays
Medicine Essays
Music Essays
Personal Essays
Personal Experience Essays
Persuasive Essays
Persuasive Speech Essays
Philosophy Essays
Political science Essays
Politics Essays
Proposal Essays
Psychology Essays
Reflective Essays
Religion Essays
Research Essays
Response Essays
School Essays
Science Essays
Sociology Essays
Technology Essays
World Literature Essays
Consumer Prices Stay Even essay
 
← Introduction to Macro EconomicsInternational Market →

Consumer Prices Stay Even. Custom Consumer Prices Stay Even Essay Writing Service || Consumer Prices Stay Even Essay samples, help

In the article “Consumer prices stays even” published in New York Times News (December 16, 2011), it is noted that the consumer price did not change during November, 2011 and therefore, the inflation rate declined. Despite the expectation that the Consumer Price Index (CPI) would increase by 0.1 percent during November, 2011, it remained unchanged. During the 12 months through November, the prices rose 3.4 percent down from 3.9 percent. As a result, the report says that the inflation has taken a nosedive.

However, according to the Federal Reserve, the economical problems in Europe threaten the American economy. The Fed continued to note that slow growth and high unemployment rate might lead to inflation. The soaring prices have instilled panic in the Fed’s economists over an impending rise in inflation.

Economic Concept(s): Consumer Price Index & Inflation

This article is a good example of the economic concept Consumer Price Index and Inflation. According to Mankiw (2012 p. 514), “[t]he consumer price index (CPI) is a measure of the overall cost of goods and services bought by a typical consumer.” It is normally computed and reported on a monthly basis. On the other hand, Inflation is “the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.” (Investopedia, 2011)

The Bureau of Labor Statistics calculates the CPI by fixing the basket, finding the prices, computing the basket’s cost. Then they divide the price of a basket in current year over the price basket in the base year multiplied by 100. Also, they calculate the inflation rate by dividing the difference between the CPI current year and CPI base year over CPI base year multiplied by 100.

Article Analysis

According to this article, the CPI did not change in November (0.0 percent) even though it slightly rose from -0.1percent in October. (Bureau of Labor Statistics, 2011) In November, the CPI rose to 2.2 percent after the negative 2.1 percent in October. As a result, the inflation rate is low since 0.1/2.1*100=4.8 percent. In other words, if the inflation is low the country could be more productive by decreasing the unemployment rate.

The unchanged state of the CPI in November is also a projection of economical turmoil in America since there is no significant change in the CPI. The economic turmoil in Europe may be contingent to the increasing inflation in America. The rising price of imported raw materials and services in the European economy causes an increase in the cost of importation for the Americans. This in turn leads to a rise in the commodity prices and hence inflation.

Moreover, the increased inflation can be attributed to raise indirect taxes that are imposed by the American government to her citizenry. For instance, arise in Value Added Tax and fuel duties results into suppliers passing the tax burden to the consumers who bear the brunt of a spiking CPI. Furthermore, the rising cost of labor in the labor intensive American industries due to an increase in wages may have contributed to inflation. If there is no significant increase in productivity to balance the rise in wages, then wage inflation occurs which in turn exercabates inflation of prices since the businesses lack the ability to absorb the shocks imposed by expensive labor.

In addition, America may have accrued debts and international borrowing which forces her to service the loan which is accompanied by interests. This burden of increased prices is once again thrown to the consumers leading to a rise in the CPI hence an increase in price and inflation.

Consumer Prices Stay Even. Custom Consumer Prices Stay Even Essay Writing Service || Consumer Prices Stay Even Essay samples, help

Order Now
Order nowhesitating

Related essays

  1. International Market
  2. BP Oil Spill
  3. Introduction to Macro Economics
  4. Zero-Base Budgeting


order now

 
 
3.6K
1.2K
Order now
Email
Password
 
why choose us
96% of satisfied returning customers
24/7 customer support
A wide range of services
Up-to-date sources
100% privacy guaranteed
MA/PhD writers
Custom written papers only
Free plagiarism report
Free revision (within 2 days)
Free extras by your request
Direct communication with a writer
faq
Are your writers qualified for the custom writing?
How quick can my order be accomplished?
Is it legal to buy custom essays, term papers or book reports from your company?
Are essays offered by your company truly custom-written?
Is it safe to buy from SupremeEssays.com?
How secure is the payment system of your company?
Can I submit custom essays or term papers done by your company as my own?
How can I contact your company if I've got problems with my ordered paper?
testimonials

Finally, I've found the real custom writing service . My grades are saying "Thank you, it's been a pleasure to work with you."

Jamal, South Africa

I can't believe you finished my essay under such a short deadline! You saved me from a disaster once again. You guys deliver exactly what you promise. I'll be back. That's for sure!

William H , Kansas, US

contact us
Toll free for US & Canada only. International callers are charged for outgoing calls.

Our phone numbers:
SupremeEssays.com provides custom term paper writing/rewriting services inclusive of research material for assistance purposes only. The term papers should be used with proper reference and are not meant to replace actual assignments.
 

Get 15% off your first custom essay order

Order now

PRICES
from $12.99/PAGE

X