Unit Cost Increase--please explain

[augustus]

I've been trying to figure out how the Unit Cost Increase thing works, and I just don't get it. The manual is very defficient in explaining it:

Nations also experience economic inefficiency based on the purchases they make. Each nation has its own UCI factor: for every UCI factor a nation spends, the monetary cost of units increases by 1%. Unit Cost Increase (UCI) decreases automatically by a total amount of 1% a year. UCI effects are always included in the current price of units and developments. A nation’s UCI can be found at the bottom of the main screen, and on the Economy advisor screen (along with the nation’s UCI factor). Nations may begin scenarios with a pre-determined level of UCI. UCI is meant to represent the affects of inflation, scarcity, war-weariness, and so forth.

1. How exactly does a nation 'spend' a UCI factor?
2. On the Economic Advisor screen the UCI is followed by a formula, in the manual example it says "Unit Cost inc.: 5% (=Money Spent 500/100)". But the same screen shows expenses under 500, and where does the denominator 100 come from?
3. What can be done to lower UCI?

I understand what the UCI is, I just don't understand how it is calculated.

[morganbj]

Whenever you buy units, your UCI reflects the total cost. As the total cost you've spent goes up, there is a % increase based on some increment of money. That increment is different for each country and can be found on the "Economy" screen. France, in 1805, has a factor of 130. So, if you've spent 260 on units, you will see a 2% increase to the cost of the next unit(s) you buy.

The only way to lower the % is to not buy anything, or buy less that the amount that the total decreases each year. But, it takes a VERY long time to lower it in some scenarios, so sometimes it's just best to get what you need quickly, then let your spring levies fill the gaps for you. I usually don't buy anything after the first couple of years, myself. I capture artillery and build cavalry and specialty units, then just let the levies provide me with infantry. (Playing France here.) It generally works.