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- Question 12 If the inflation rate turns out to be greater than was is expected to be, the clear winners are businesses. lenders. borrowers. people on fixed incomes.Question. Suppose that people expect inflation to equal 3 percent, but in fact prices rise by 5 percent. Indicate whether this unexpected higher rate of inflation would help or hurt each of the following groups. a homeowner with a fixed-rate mortgage. a union worker with a fixed labor contract a company that has invested some of its endowment in government bond which pay fixed rate of return.9-)Suppose that government decides to support the firms for their investments in research and the development.Assuming this support increases productivity in the economy, use aggregate demand and supply analysis to predict the short-run and long-run effects on inflation and output. Show these effects on a graph and explain the results in detail. IMPORTANT NOTE FOR THE QUESTION: DESCRIPTION ≠ EXPLANATION; So please DO NOT just write like “this curve shifts right or left etc.” as an explanation (I can see it on the graph), EXPLAIN “WHY” that curve shifts right or left and clearly write “WHAT” are the short-run and the long-run RESULTS of the shift(s) on inflation and output.)
- 5. Computer forecasting models have Group of answer choices -been able to forecast changes in the growth rate of real GDP with considerable accuracy. -had only limited success predicting turns in key economic variables such as real GDP. -been able to accurately forecast the future direction of inflation but not real GDP. -been able to accurately forecast the future direction of real GDP but not inflation. Which is correct?How was the crisis of stagflation in the 1970s significantly different from the Great Depression? Chose 1 answer. A. Unemployment was much higher during the stagflation crisis B. Stagflation was caused by low aggregate demand C. Economic policymakers focused mainly on monetary policy as the solutionQ1- Explain what researchers have found on the costs and benefits of inflation?
- 1- 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. 2-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. 3- Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow. Aggregate Supply and Aggregate Demand Model (i) Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and…RM3 Answer briefly in 5-10 lines. What is the difference between inflation deflation and disinflation?"Inflation tax" means that: Select one: a. as the price level rises, taxpayers are pushed into higher tax brackets. b. as the price level rises, the real value of money held by the public decreases. c. as taxes increase, the rate of inflation also increases. d. in a hyperinflation, the chief source of tax revenue is often the printing of money.
- Discussion. Please state your points and reasons according to the material given below. Inflation is an economic phenomenon that every country has to cope with. This year has seen drastic inflation in a number of countries all over the world. Please write down answers to the questions below based on your finance knowledge. (1) Explain the causes of inflation and the ways to control it. 2) Suppose you are the consultant of the central bankers in your own country, what suggestions will you give to control and solve the unacceptable inflation3- A country is said to be experiencing inflation when A- the goods-market is rising over time B- prices of all goods and services are rising over time C- Total output is falling over time D- prices of all goods and services are falling over time8 - What does a fall in inflation mean?A) Increasing the level of well-beingB) falling pricesC) an increase in pricesD) a decrease in unemploymentE) Decrease in the rate of increase in prices
