March Madness

Today in economics class we covered the factors of inflation and poverty. First off, inflation is the general increase in prices of all goods. With inflation there are three different ways to cause inflation. The first theory and the most simple theory is known as The Quantity Theory. The Quantity Theory of inflation is when a country puts too much money into their economy, this lowers the value of that money and could cause prices to increase. The next theory is the Cost-Push Theory. The Cost-Push Theory states that inflation occurs when producers raise prices to meet increased costs. The final theory is The Demand-Pull Theory. The Demand-Pull Theory states that inflation occurs when demand for goods and services exceeds existing supplies. We also learned about the factors that cause the difference between rich and poor in society. These factors include talents. inheritances, luck, skills, and differences in demand. If a person can rap and appeal to a large crowd he could be signed by a record deal and make millions, if a person can lift heavy objects but has little education and no talents he won't be as successful in getting jobs.