Both inflation and deflation can be dangerous. Based on your readings, provide historical examples, and explain what are the respective damaging effects?

Q: What can be done to minimize effects of difficult times due to high inflation, recession and/or…

A: Monetary Policy refers to the process where the central bank implements various actions such as…

Q: compare between demand pull and cost push inflation

A: Inflation: It is the situation when there is a rise in the price of goods and services that leads to…

Q: When the economy approaches full employment, why does demand-pull inflation become a problem?

A: Demand-pull inflation is the upward tension on costs that follows a lack in supply, a condition that…

Q: Suppose that people expect inflation to equal 5 percent, but in fact, prices rise by 7 percent.…

A: Since we answer only up to 3 sub-parts of a question, we are answering only the first three. If you…

Q: Explain one remedy for inflation.

A: The inflation is the general increase in the price of all goods and services in the economy.…

Q: Explain the trade-off between unemployment and inflation by citing a concrete example.

A: General increase in price level for goods and services in the economy is known as inflation.…

Q: Discuss the costs associated with high inflation.

A: Inflation is a period of abnormal hike in the general price level in the economy. This means that…

Q: Which of the following is a potential benefit of inflation? Higher unemployment Higher prices Less…

A: Inflation refers to the continuous increase in general price level.

Q: Discuss critically about demand-pull and cost-push inflation with the help of graphically and…

A: Inflation is defined as a prolonged rise in the overall price level, resulting in a loss of money's…

Q: Which one is worse: inflation or deflation?

A: Inflation and deflation measured by the consumer price index. Consumer price index is the weighted…

Q: should the government emphasize full employment, and should the central banks prioritize…

A: Unemployment refers to people who are employable and actively looking for work but can't find one.…

Q: What could be a real world example that explains the difference between inflation and deflation?

A: Inflation refers to a rise in the general price level in an economy whereas deflation refers to a…

Q: Inflation is defined as a sustained increase in the price level.   is this true or false?

A: Inflation:The sustained rise in the general price level of a basket goods and services for the…

Q: Discuss the short-run tradeoff between inflation and unemployment.

A: In short-run inflation and unemployment are negatively related while in the long run, these are…

Q: If you are hired by an organization, you would be least hurt by inflation if

A: Inflation is the consistent rise in general price level over period of time. It reduces the value of…

Q: Explain how government gains from unexpected inflation when it borrows?

A: Inflation refers to a rise in the price of goods and services in an economy. This leads to a fall in…

Q: Define the term inflation rate?

A: Nominal interest rate is the rate which does not take inflation into account. All the prices of…

Q: How can we calculate the average inflation rate?

A: The average inflation rate calculates the increase in the amount of the price of goods over a period…

Q: Which of the following is a cause of Cost-Push Inflation? a. Lower prices for raw materials

A: Cost push inflation arises from a decrease in aggregate supply, which is caused by an increase in…

Q: Why is there no long-run trade-off between unemployment and inflation?

A: Solution: Trade-off: It refers to an act of balancing between two opposing situation or thing.…

Q: What are the various effects of high inflation

A: Inflation is the general rise in the price level of a country over a period of time. It is broad…

Q: Discuss methods to overcome inflation in India

A: Inflation refers to an increase in the prices of goods and services.

Q: Why might the Coronavirus pandemic cause inflation?

A: Inflation is characterized by a situation when there is a continuous rise in prices, indicating a…

Q: Which of the following best represents a combination of inflation, slow economic growth and high…

A: The economies around the world work with the main motive of enhancing their overall growth, which…

Q: Which of the following correctly shows the steps needed to calculate the inflation rate?

A: The consumer price index is used in measuring the price level. The consumer price index converts the…

Q: Which of the following factors could start a demand-pull inflation? # randomize A. an increase in…

A: Demand pull inflation is defined as the rise in price due to increase in demand. In other words,…

Q: If inflation is less than expected, who benefits—debtors or creditors? Explain.

A: If inflation is less than expected, then creditors will benefit, and debtors will loose. This is…

Q: Define the term Inflation-Free Interest Rates?

A: The inflation-free interest rate is also known as real interest rate measures the earning power of…

Q: Please explain fully, Can inflation decrease unemployment?

A: Inflation is the increase in the price level of the goods in the economy.  Unemployment is the…

Q: If inflation rises unexpectedly by 5% which of the following economic actors are helped by the…

A: Inflation refers to the general increase in the price level in the economy and increases in the…

Q: Based on real life situations and what we learn in Economics, is there any benefit to inflation?…

A: Inflation was and still is a contentious topic in economics. Based on the circumstances, even the…

Q: What are the types of inflation? Explain with the help of examples? According to macroeconomics

A: Inflation is defined as the price rise goods and services in the economy. These are of three types…

Q: Which of the following is not an economic effect of inflation?

A: Inflation refers to the general rise in prices of goods and services in the economy. The rapid and…

Q: Determine the economic loss or gain in the present worth caused by inflation?

A: Present worth is defined as the present value of the future amount of money or income for a given…

Q: A little bit of inflation is worse for society than a little bit of unemployment.

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Define the term future inflation?

A: Inflation is the process of increasing the overall general price level in the economy in a given…

Q: Explain the pros and cons of inflation.

A: The nations tend to operate upon the basis of the expenditures which various entities do in the…

Q: Under what conditions is inflation relatively insensitive to wages and unemployment??

A: The inflation is the rise in the aggregate price level. The wages are the returns to the labor and…

Q: Demand-pull inflation can develop when...

A: Demand is the total quantity of commodities for which the customers are ready to pay various…

Q: Describe Inflation and how it is measured? Ascertain the Fiscal and Monetary policies that are…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Explain with example the procedure of handling the multiple inflation rates?

A: Inflation refers to the rise in the prices of goods and services over a period of time. There are…

Q: Indexation the automatic correction by law or contract of a dollar  amount for the effects of…

A: Organizations and governments use indexation as a mechanism or strategy to link pricing and asset…

Q: During the 1990s, price increases slowed down (inflation rate was declining). This situation is an…

A: The increase in the price causes the value of money to decline and decrease in the purchasing power…