Fluctuation example sentences

The proportional income tax, thus, acts as an automatic stabiliser – a shock absorber because it makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP.Third, the economy tends to be subject to substantial fluctuations and may suffer from prolonged periods of unemployment or inflation.The average figureures hide the variations between trades and the fluctuations from year to year.The built-in stabilisers, however, reduce only part of the fluctuation in the economy, the rest must be taken care of by deliberate policy initiative.Being able to manage with purchase of merchandise in smaller quantities, retailers are in a position to avoid the risk of storage, pilferage, obsolescence, reduction in prices and demand fluctuations in respect of the additional goods that they would have to purchase in case the services of wholesalers are not available.These are unforeseen events like political disturbances, mechanical failures such as the bursting of boiler, fluctuations in exchange rates, etc.Speculative risks arise due to changes in market conditions including fluctuations in demand and supply, changes in prices or changes in fashion and tastes of customers.This helps limit the upward fluctuation in consumption spending.In case of managed floating, central banks intervene to reduce fluctuations in the exchange rate.