5,If the central bank sells government securities from the private sector-money markets, other things being equal, what would the effect be on the following? a) Economic activity and inflation
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5,If the central bank sells government securities from the private sector-
a) Economic activity and inflation
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- a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle. b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in…23) How might big companies ,such as Walmart, avoid contributing to inflation when raising employees wages ?2. Why does the "quality/new goods bias" arise if the inflation rate is calculated based on a fixed basket of goods?
- 2. How does a very high rate of inflation affect individual spending and saving? Explain your answer.a) Why do some economists claim that we should not worry too much about inflation?(a) Calculate each of the following for Year 2. Show your work. (i) Real GIDP per capita for Arturia (il) Real GDP per capita for Ringberg (b) If Arturia and Ringberg have the same velocity of money in Year 2, which nation must have the higher money supply in Year 2? Explain (c) Calculate each of the following in Year 2. Show your work. (i) The inflation rate in Arturia (il) The inflation rate in Ringberg (d) Based on your answer to part (c), if the nominal interest rate is the same for both nations in Year 2, which nation experiences the higher real interest rate in Year 2? Explain. (e) Ringberg produces consumer goods and capital goods. While maintaining full employment, Ringberg decides to allocate more resources to the production of consumer goods. What will be the effect on the long-run economic growth rate in Ringberg? Explain. esc C 1 の
- 2. What two features of the Indian economy meant that an increase in rice prices was likely to spread through the economy and influence the overall inflation rate?If a central bank buys government securities from the private sector-money markets,leading to an expansion of the money supply, other things being equal, what would theeffect be on the following?(a) The economy’s monetary base(b) Short-term money market interest rates(c) Investment(d) Aggregate Supply(e) Aggregate Demand(f) Economic activity(g) Price level of the economySuppose there are 1200 units of money on an island, but money grows by 5.32% per year. Islanders spend each unit of money 2.3 times per year on average and this spending grows by 1.98%. The price level is at 34. GDP is expected to grow at 4.83%. What is the level of inflation? Answer this as a percentage without the percentage sign and round this to two digits after the decimal. ex. If you found the rate to be 5.125%, answer 5.13.
- 20) Some inflation is actually considered good. Explain why that is.differentiate the 3 types of inflation1. In a specified year, nominal gross domestic product grew by 12 percent and real gross domestic product grew by 5 percent. What would be the inflation rate for this year? 7% -7% 8% 17% 2. Which of the following could result in simultaneous increases in unemployment and inflation? Which of the following could result in simultaneous increases in unemployment and inflation? An increase in the overall level of productivity A decrease in government spending A decrease in the money supply An increase in the expectations of future inflation 3. From 2017 to 2018, the unemployment fell from 4.3 to 3.9 percent while inflation fell from 3.2 to 1.4 percent. Which of the following is a valid reason behind these changes? Aggregate supply curve shifted to the right Aggregate supply curve shifted to the left Aggregate demand curve shifted to the right Aggregate demand curve shifted to the left 4. According to the law of diminishing marginal utility, which of the following choices…