Briefly Describe the Process by Which Budgets Are Developed and Administered

question 84

Essay

Briefly describe the process by which budgets are developed and administered.

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Definitions:

Cost-Pull Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc., leading to a decrease in the supply of these goods.

Demand-Pull Inflation

A sustained rise in the price level caused by a rightward shift of the aggregate demand curve.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Standard of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.