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High Middle Ages= new opportunities in __economy 15th:__activity and __
- agrarian
- commercial
- world market
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Economic Conditions in the Sixteenth Century
a. __was major economic problem in 16-17th
Price Revolution
- Inflation
- 1.
Inflation rate low, but noticeable in Europe with stable prices - a. Foodstuffs increased in price
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Inflation
Result of inflation
- 1. Result: wages failed to keep up with price increases
- a. Wage earners saw standard of living drop, while landed aristocrats raised rents and prospered
- b. Commercial and industrial entrepreneurs benefited from price revolution because of rising prices, expanding markets, and cheaper labor costs
- i. Stimulus to investment and growth of capitalism
- c. Governments affected, causing borrowwng heavily from bankers and imposing new tax burdens on their subjects, often stirring additional discontent
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Inflation
Causes
- a. May be rise in prices due to great influx of precious metals form New World
- b. May be increase in population created inflationary pressures
- i. Growing population increased demand for land and food and drove up prices for both
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