What is the inflation of the offer?

, which is commonly known as inflation of push costs, the basic concept of inflation of the offer is related to a significant increase in the cost of goods and services that are considered necessary and somewhat difficult to replace. This differs from the concept of inflation of demand, where consumer demand would drive the level of inflation. Inflation of supply shocks often involves an effect on a trick that will cause changes in many sectors. One of the best examples of inflation is the oil crisis at the beginning of the 70th year, which led to an increase in gas prices in North America and other parts of the world.

generally causes inflation of supply shock not only to increase the price of the basic product, but also other products that are closely connected. As with the increase in the price of oil, the automotive industry was carried out by inflation in the oil industry. This meant that car prices began to increase. In the automatic parts advertising, the mechanics in turn charge more to cover the mechanics for their servicesHigh costs to ensure material for repair of vehicles.

Not all economists have signed up to the idea that inflation of the supply-up will automatically lead to a higher price of goods in a number of markets. Some financial experts who recognize the actual impact of the price increase on the basic product on directly related products believe that a phenomenon that is identified as an inflation of offer will be compensated by changes in the shopping habits of some consumers.

As an example, rising gasoline costs have led some consumers to use public transport or use rounds instead of cars for short errands or as a means of work and work. This type of behavior modification helps maintain the level of infolating that occurs rather than allows the trend to continue.

Inflation of the offer-up tendency tends to be identified as supporters of the Keynesian School. In a relationshipTo inflation an offer-up, Keynesians understand the modern economy as the inclusion of prices that are classified as sticky down or downward. To avoid or at least control the tendency to recession, inflation of the offer can act as one way to limit the unemployment rate and prevent the fall of gross domestic product. From this point of view, the phenomenon of inflation of the offer-up may be a tool for reversing unfavorable economic trends and restoring at least a certain sense of balance of the country's economy.