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Inflationary Spiral for Dummies

noun


What does Inflationary Spiral really mean?

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Hey there! I'm really excited to help you understand what "Inflationary Spiral" means. So, let's dive right in, shall we?

Imagine you have some pocket money, and you want to go buy your favorite toy from the store. But when you reach the store, you find out that the price of the toy has increased since the last time you were there. Bummer, right? Well, this increase in prices is called inflation.

Now, an "Inflationary Spiral" is like a never-ending cycle of rising prices that keeps going around and around. It's a bit like being caught in a whirlpool, being pulled deeper and deeper into the water. In this case, it's like being pulled deeper and deeper into a cycle of rising prices.

When the prices of things keep going up, people might not be able to buy as much as they used to with their money. So, to make sure they can still afford the things they need, they might ask for higher wages. But here's the thing, when people get higher wages, businesses have to spend more money on paying their employees. And to recover that extra spending, businesses increase the prices of the things they sell. So, it becomes this never-ending cycle of rising prices and people needing more money to afford those prices.

Imagine being on a roller coaster that keeps going higher and higher, and you just can't get off. The higher it goes, the scarier and more expensive it becomes. Well, an inflationary spiral is a bit like that. The prices of things keep going up, and it becomes harder and harder for people to keep up.

So, to summarize, an "Inflationary Spiral" is when prices of things keep rising, causing people to need more money to afford those prices. And when people ask for higher wages, businesses have to increase the prices of the things they sell, which just keeps the cycle going.

I hope that explanation made sense to you! If you have any more questions, feel free to ask, and I'll be here to help you out!


Revised and Fact checked by Stephanie Wilson on 2023-10-29 03:32:09

Inflationary Spiral In a sentece

Learn how to use Inflationary Spiral inside a sentece

  • When the price of milk goes up, the price of other things like bread and cheese also goes up. Then, people start asking for higher wages to afford these things, which makes the prices of everything go up even more. This is an inflationary spiral.
  • Imagine you have a toy store and the cost of making the toys increases. So you need to raise the prices of the toys to make a profit. However, when people see the new prices, they also want their own salaries to be higher. This results in even higher prices for the toys, creating an inflationary spiral.
  • Let's say you have a candy shop and the cost of sugar increases significantly. In order to cover the expenses, you raise the prices of the candies. Because the candies are now more expensive, people start asking for more money to afford them. This leads to a never-ending cycle of rising prices, known as an inflationary spiral.
  • If a country's government starts printing too much money, there will be too much money circulating in the economy. As a result, people will start spending more, which will increase the demand for goods and services. With higher demand, businesses can raise their prices, leading to an inflationary spiral.
  • When the price of gasoline goes up, it affects the cost of transportation and delivery for many products. This increased cost is then passed on to the consumers, making everything more expensive. As people's expenses increase, they demand higher wages, causing prices to rise even further. This continuous cycle of rising prices is called an inflationary spiral.

Inflationary Spiral Antonyms

Words that have the opposite context of the original word.

Inflationary Spiral Hypernyms

Words that are more generic than the original word.