Look at the graph representing the China Inflation Rate. Please write your assumptions about the situation described by the "red arrows", the consequences and possible reasons and wat should be done by the government. 1.8 2.1 Jan 2023 0.7 Apr 2023 /- 1.1 -0.3 Jul 2023 Oct 2023 -0.5 2.50% 2.00 % 1.50% 1.00% 0.50% 0.00% -0.50% -1.00%

Identity several parties likely to he helped and hurt by inflation.

If inflation rises unexpectedly by 5, indicate for each of the following whether the economic actor is helped, hurt, or unaffected: A union member with a COLA wage contract Someone with a large stash of cash in a safe deposit box A bank lending money at a fixed rate of interest A person who is not due to receive a pay raise for another 11 months

Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.

Why are inflationary dangers lower in the high-income economies than in low-income and middle-income economies?

The prime interest rate is the rate that banks charge their best customers. Based on the nominal interest rates and inflation rates in Table 19.10, in which of the years would it have been best to be a lender? Based on the nominal interest rates and inflation rates in Table 19.10, in which of the years given would it have been best to be a borrower?