How are people worse off when the price level rises as fast

Related BrainMass Solutions

• production possibilities curve

  Essentially this is the same thing as on the contract curve. Note you cannot make someone better off while not making anyone worse off. For example, if you equalize the price, then short people will be worse off.

• Taxing consumables

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• Do Sunk Costs Matter in Decision Making?

  The second solution proves why I cannot be worse off if my hourly wage rises, whether I choose to work more or less.

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  All the while, as long as demand stays high enough to cause inflation, that means people are buying, so GDP is increasing, jobs are being created unemployment decreases and inflation rises.