Read an article and write 300-500 words

Read this article about “pricing power“(Attached) and discuss the following. Why did Argentina’s government manipulate inflation data? How would more accurate inflation data affect the economy of Argentina, if at all? Or, because inflation is simply an abstract statistic, does it even matter whether it is accurate or not?

Your response must be 300 to 500 words with cited page.

Written Assignment Rubric

Is the submission in the 300-500 words range? Is the writing understandable?

Does the submission accurately use a concept from Intermediate Macroeconomic?

Does the submission apply knowledge from Intermediate Macroeconomic to answer the questions about the article? Does the submission make a coherent argument or provide a coherent answer to the questions asked using information from the article and the course?

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Solution Preview

Pricing Power

In economics, pricing power is defined as the ability of a company to raise the value of its products, without affecting its market demand and besides without lowering the production rate and the quality of the products it manufactures. According to Alogoskoufis (2018), pricing power in a country may lead to inflation, which occurs where there is a constant increase in the value of goods and services over a long period of time. Notably, inflation has a negative influence on the ability of people in a country to purchase more goods, leading to a decrease in the purchasing power since they are in need of quality and affordable goods which their prices have become exaggerated due to inflation.

(622 words)