Answered: briefly explain with example five…

Business

Economics

briefly explain with example five causes of inflation in the economy and how these hit the poor harder

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 16QP

See similar textbooks

Related questions

Q: Consider table Q3(c) a hypothetical economy in which the typical consumer's basket consists of 3…

A: Consumer price index measures the weighted average of prices of basket of goods, a typical consumer…

Q: 1)Plot the following markets on a graph: Labor market: using 5 laborers and $5.00 for wage as point…

A: a) To plot the labor market using 5 laborers & $5.00 for wages at point A which is the point of…

Q: able below contains data for the country of Batterland, which produces only waffles and pancakes.…

A: Gross domestic product is a monetary measure of the market value of all the services and the final…

Q: 1. Give an example to illustrate how the economy can operate below the natural unemployment rate.

A: Natural Rate of Unemployment is the lowest level of unemployment rate that a growing and healthy…

Q: does inflation hit the poor harder? \briefly explain with example five causes of inflation in the…

A: Meaning of Inflation: Inflation occurs when the general level of prices and cost is raising –…

Q: Consider a simple economy that produces two goods: pens and erasers. The following table shows the…

A: Nominal GDP is the market value of all final goods and services produced by a nation at the current…

Q: Draw a graph that shows inflation and that the output is increasing and label PL's, GDP's, AD and…

A: Aggregate Demand (AD) and Aggregate Supply(AS) Framework: The AD/AS model is one of the fundamental…

Q: Economists use labor-market data to evaluate how well an economy is using its most valuable…

Q: Briefly explain the four different types of unemployment.

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you as per…

Q: Discuss the impact of inflation on economy?

A: The economies around the world tend to operate with the motive of enhancing their production levels,…

Q: Between 2017 and 2018, the CSPI increased by |. Between 2018 and 2019, the CSPI increased by Which…

A: Inflation is a steady rise price of goods and services. Inflation is usually measured by an index…

Q: 1. Illustrate the information in the table below in a line graph. Year Unemployment rate %…

A: The unemployment rate indicates the fraction of the total labor force that is unemployed. The total…

Q: Which of the following people would be unemployed (or belonging to any labor market group) according…

Q: During the early 2000s, the Case-Shiller U.S. Home Price Index, a measure of average home prices,…

A: A stock index, sometimes known as a stock market index, is an index that monitors a stock market or…

Q: What are the money markets and what are the capital markets? How do they differ? What are their…

A: Money market: 1)Money market is a short-term market where instruements like commercial papers,…

Q: What is the Inflation-free interest rate? Give an example?

A: Inflation refers to a continuous increase in the general price level of goods and services in an…

Q: Suppose the evening news anchor announces that "The Bank of Canada Raises the Target Overnight Rate…

A: Target overnight rate is the interest rate at which banks borrow and lend from one another in the…

Q: Rosa received a 2% raise at work and her coworker, Amy, received a 5% raise. Inflation is currently…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A typical consumer in Microtania has a market basket consisting of 5 Lemons and 4 Peaches. The data…

A: It is given that in Microtania, a typical consumer as a market basket consisting of 5 Lemons and 4…

Q: A columnist writing in the Wall Street Journal observed: "Franklin D. Roosevelt's March 1933…

A: Deflation in economics refers to a drop in the overall level of prices for goods and services. When…

Q: 4. Economists in Sandersonia have constructed a consumer basket of goods to track the price level in…

A: We have basket size Cookies =2 Coffee = 4 Books =3

Q: how are borrowers and lenders affected when the nominal rate is 9%, the inflation premiums on loans…

A: The nominal interest rate refers to the interest rate charged on loans without taking inflation into…

Q: What is inflation? How is it measured? Briefly discuss the factors which can cause Inflation. List…

A: Inflation: Inflation is defined as rise in the general price level of goods and services over a…

Q: Briefly discuss the major reasons for unemployment to fall 4.9% in June 2021 even amid the…

A: Unemployment in Australia has fallen by 0.2% to 4.9% however underemployment is on the ascent as the…

Q: 22. For the three-part question that follows, provide your answer to each part in the given…

A: Purchasing power of an individual depends on the real increase in the amount of income rather than…

Q: The unemployment rate dropped to 6.6 per cent in January 2022, which is lower than the pre-pandemic…

A: The expanded definition of unemployment refers to a situation when people are not looking for any…

Q: Graph an economy which suffers a negative supply shock. How does this effect inflation…

A: Supply shocks are the changes in supply of a good which can change price and output level Negative…

Q: Guy Ferrell, a student who lives in the country Paragon, observes that analysts are cutting their…

A: 1. The growth forecasts are very important in determining the growth and development of every…

Q: Illustrate the information in the table below in a line graph. Year Unemployment rate % Inflation…

A: The unemployment rate indicates the fraction of the total labor force that is unemployed. The total…

Q: The economist A.W. Phillips published a famous article in 1958 in which he showed a negative…

A: Unemployment adversely affects the purchasing power and demand (hence AD) of consumer, which is not…

Q: When the labour market is in equilibrium, it means that the number of jobs in the economy is equal…

A: Answer: Even if the labor market is in equilibrium there exists some level of unemployment. It is…

Q: Why is the CPI a better indicator of inflation for households then the GDP deflator? Is inflation…

A: The consumer price index measures the average change in the price index of the basket of goods and…

Q: Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Guy Ferrell, a student who lives in the country Paragon, observes that analysts are cutting their…

A: The growth forecasts are very important in determining the growth and development of every economy.…

Q: Q3: Suppose in UAE consists of 200 books and 290 Computers The table below shows data on prices for…

A: a. In 2014 Price of books (PB) = $1.40 Quantity of books(QB) = 200 Price of computers (PC) = 200…

Q: What is inflation ? Briefly explain the costs of inflation . Use your outlined cost of inflation…

A: The expenses that are being incurred for carrying out day to day transactions of a business or…

Q: In 1991, the Barenaked Ladies released their hit song “If I Had a Million Dollars.” How much money…

A: CPI is the most rigorous & reliable measure of retail inflation of an economy. It calculates the…

Question

briefly explain with example five causes of inflation in the economy and how these hit the poor harder

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Causes of inflation

VIEW

Step 2 Causes and effect of inflation

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

does inflation hit the poor harder? \briefly explain with example five causes of inflation in the economy and how these hit the poor harder
What is inflation? How is it measured? Briefly discuss the factors which can cause Inflation. List fiscal and monetary policies which are used to control Inflation.
Briefly state two reasons why inflation may be considered to be an economic problem.
QUESTION 6 What is inflation? Briefly discuss the various Fiscal and monetary policies that are generally adopted to curb inflation.
(d)State any two logical information you can infer about the hypothetical economy described above. (e)The government in 2018 announced and implemented a 10 percent increase in the nominal salary of an average public servant from Gh¢500 in 2017. Does the salary of an average public servant have more purchasing power in 2017 or 2018? (f)Briefly describe the concept of ‘rebasing’. Explain how rebasing affects the income and cost of living estimates of a country.
Briefly explain in a paragraph or two why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation.
Suppose you are a senator writing a bill to index Social Security and federal pensions: i.e., your bill will adjust these benefits to offset changes in the cost of living. The government budget is very tight. Which inflation measure will you use, the one based on GDP deflator or CPI? Briefly explain why.
What is inflation ? Briefly explain the costs of inflation . Use your outlined cost of inflation with examples to discuss whether inflation is better than deflation .
In the fifty years before the covid-19 pandemic, the U.S. also suffered two deep recessions, in 1981-82 and 2007-2009. (As you know, the second was the Great Recession.) Based on the historical evidence in the chart, about how high does the unemployment rate rise in terrible recessions like those? Briefly explain.
Briefly explain the four different types of unemployment. Discuss the ways in which unemployment can be reduced on the demand side ofthe economy
What is most likely to happen to inflation and real output growthif a government raises taxes and its economy has a year of excellentweather for growing crops? Illustrate your verbal answer with a graph.Label everything!
Briefly describe what is meant by the non-accelerating inflation rate of unemployment (NAIRU)