The sharp increase in the price of goods and services post covid-19 pandemic is expected to make all consumers in the country of Langkasuka very worried and anxious. If you are an economic adviser,suggest four reasonable steps to be forwarded to the goverment to curb the rise in goods prices and control the extreme rise in inflation.

The sharp increase in the price of goods and services post covid-19 pandemic is expected to make all consumers in the country of Langkasuka very worried and anxious. If you are an economic adviser,suggest four reasonable steps to be forwarded to the goverment to curb the rise in goods prices and control the extreme rise in inflation.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 17E

See similar textbooks

Similar questions

Suppose you have $100 saved in the bank at an annual saving rate of 5 percent today. Also, the inflation rate is expected to be 7 percent annually over the next few years. What kind of confusion related to inflation would this create? Group of answer choices Blurred price signals Difficulties in long-term planning Unintended redistributions of purchasing power Substitution Bias
Why does the “quality/new goods bias” arise if we calculate the inflation rate based on a fixed basket of goods?
Changes in oil prices can affect the inflation-unemployment outcome, explain what effect changes in oil prices may have on these two variables.
nterest rates are usually ________ during the latter stages of a downswing in the South African business cycle. An improvement in economic activity is normally triggered by an increase in ________. Manufacturing production rises during an upswing and in the latter stages of the upswing, inflation, and interest rates ____
Macroeconomics includes the study of inflation, or the overall rise in price levels. Why does inflation erode the purchasing power of consumers? Higher prices at the same income make goods less affordable. Purchasing power means the ability to buy goods and services. Prices of goods and services change in tandem with inflation. Consumers decrease discretionary spending if inflation is high.
How long would it take for the price level to double if inflation persisted at the following percentages? 17.5 percent per year 35 percent per year 3.5 percent per year
Which of the following is evidence of an inflationary gap? Group of answer choices very low unemployment rates very low sales figures artificially high GDP rates very long lines at employment agencies Flag this Question
Inflation rates, like most statistics, are imperfect measures. Can you identify two ways that the inflation rate for fruit does not perfectly capture the rising price of fruit.
Which of the macroeconomic policies listed below is contractionary and will help reduce the rate of inflation? Group of answer choices A balanced budget increase in both government spending and autonomous taxes. Open market purchases by the central bank. Higher transfer payments to the general population to help offset higher prices. Promotion of an appreciated domestic currency in foreign exchange markets.
A fully anticipated increase in the inflation rate can lead to Group of answer choices higher market interest rates. a decrease in barter. increased efficiency. greater speculative activity.
: Azerbaijani citizens often visit Turkey for summer tourism. However, worsening economic conditions in Azerbaijan resulted in the fall for Azerbaijani citizen demand for Turkish summer holidays. Describe, using the AA-DD model , the short-term changes and long-term adjustment for Turkish economy.
Wage agreements and loan contracts are two types of multiperiod agreements that are important for economic growth. Suppose you sign a two-year job contract with Wells Fargo stipulating that you will receive an annual salary of $93,500 plus an additional 2% above that in the second year, to account for expected inflation. If the inflation rate turns out to be 3% rather than 2%, who will be hurt? Why? If the inflation rate turns out to be 1% rather than 2%, who will be hurt? Why?