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    MT3.3 in AP TENORIO Graphic Organizer PDF

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    Sherina Vien Tenorio
    This document discusses different types of inflation: 1. Demand-pull inflation occurs when demand for goods and services rises faster than supply can increase, usually during periods of economic prosperity when consumers have more purchasing power. 2. Cost-push inflation happens when supply is restricted while demand remains steady or increases, allowing producers to raise prices without reducing sales. 3. Spillover effects refer to higher production costs from increased oil prices being passed onto consumers through generally higher consumer prices. The document then discusses how the weakening peso contributes to inflation in the Philippines, as each 1% decline in the peso's value against the dollar results in a 0.06% increase in national inflation. To curb

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    MT3.3 in AP TENORIO Graphic Organizer PDF

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    Sherina Vien Tenorio
    29 views4 pages
    This document discusses different types of inflation: 1. Demand-pull inflation occurs when demand for goods and services rises faster than supply can increase, usually during periods of economic prosperity when consumers have more purchasing power. 2. Cost-push inflation happens when supply is restricted while demand remains steady or increases, allowing producers to raise prices without reducing sales. 3. Spillover effects refer to higher production costs from increased oil prices being passed onto consumers through generally higher consumer prices. The document then discusses how the weakening peso contributes to inflation in the Philippines, as each 1% decline in the peso's value against the dollar results in a 0.06% increase in national inflation. To curb

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    This document discusses different types of inflation: 1. Demand-pull inflation occurs when demand for goods and services rises faster than supply can increase, usually during periods of economic prosperity when consumers have more purchasing power. 2. Cost-push inflation happens when supply is restricted while demand remains steady or increases, allowing producers to raise prices without reducing sales. 3. Spillover effects refer to higher production costs from increased oil prices being passed onto consumers through generally higher consumer prices. The document then discusses how the weakening peso contributes to inflation in the Philippines, as each 1% decline in the peso's value against the dollar results in a 0.06% increase in national inflation. To curb

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    29 views4 pages

    MT3.3 in AP TENORIO Graphic Organizer PDF

    Uploaded by

    Sherina Vien Tenorio
    This document discusses different types of inflation: 1. Demand-pull inflation occurs when demand for goods and services rises faster than supply can increase, usually during periods of economic prosperity when consumers have more purchasing power. 2. Cost-push inflation happens when supply is restricted while demand remains steady or increases, allowing producers to raise prices without reducing sales. 3. Spillover effects refer to higher production costs from increased oil prices being passed onto consumers through generally higher consumer prices. The document then discusses how the weakening peso contributes to inflation in the Philippines, as each 1% decline in the peso's value against the dollar results in a 0.06% increase in national inflation. To curb

    Copyright:

    © All Rights Reserved
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    of 4

    AP 9

    MINI TASK 3.3


    Tenorio, Sherina Vien H. 9 - SPC
    DEMAND-PULL
    INFLATION
    This happens when the demand of goods and services rise so
    much that it outspaces the supply. This scenario usually happens
    in periods of great prosperity, when citizens have greater
    pruchasing power and can, as result, drive demand up.

    COST-PUSH
    INFLATION
    INFLATION This is occurs when there is a shortage of supply but with either
    enough or rising demand. At which case, producers can capitalize
    on this situation by rising prices, knowing fully well that this
    increase will not deter people from buying.

    SPILLOVER
    EFFECT
    This is when the rising of crude oil is causing oil prices to inrease
    locally. This, in turn, is leading to higher production costs that are
    then being passed on consumers by the way of higher prices
    which affects many Filipino people.

    Source: Journal
    According to the Bangko Sentral ng Pilipinas (BSP)
    the weakening of peso, increase inflation, noting
    that "as a rule of thumb, every 1 percent decline in
    the value of the peso against the dollar resulsts in
    an increase in the national inflation rate by 0.06
    precent."

    THE The weakening of peso forces the BSP to increase


    interest rates. This move is actually a usual
    DEPRECIATING response to temper soaring inflation, as it can set
    off a chain reaction where people will ultimately
    VALUE OF start spending less. This causes the producers to
    PESO keep prices at status quo.

    As a result, a depreciation of the peso discourages


    the purchasing of imported goods. Nonetheless,
    essential goods would continue to be purchased,
    although at higher peso prices. This will not do
    much good for many Filipinos, particularly those in
    the lower income bracket.

    Source: Journal
    MARAMING SALAMAT
    PO!
    Ipinasa kay: Ma'am Crish Albarillo

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