If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy. Introduction: Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy. Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise. Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction. Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

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Answer 1

Question

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

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Answer 2

Question

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

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Answer 3

Question

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

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Answer 4

Question

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

Answer 6

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

Answer 7

Chapter 23, Problem 15Q

To determine

If it is necessary for the government to pursue discretionary policy in order to eliminate unemployment due to the slow process of self-correcting mechanism in the economy.

Introduction:

Self-correcting mechanism is system by which economy reaches to a stable point with no rigid prices or lower wage rates. It works with the self-correcting nature of demand and supply in the economy.

Self-correcting demand and supply is a process in which the demand and supply gaps are covered by the economy automatically because the demand of a good pressurises its supply to increase or excessive supply pressurises its demand to rise.

Discretionary policy refers to an economic policy as per which the government of a country has to put various changes in the economic factors such as spending, wages in order to stabilise the economy before its automatic correction.

Demand pull inflation is a type of inflation which arises due to increase in the demand of goods and services far above the level of their supply.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 23 - Prob. 1Q Ch. 23 - Prob. 2Q Ch. 23 - Prob. 3Q Ch. 23 - Prob. 4Q Ch. 23 - Prob. 5Q Ch. 23 - Prob. 6Q Ch. 23 - Prob. 7Q Ch. 23 - Prob. 8Q Ch. 23 - Prob. 9Q Ch. 23 - Prob. 10Q

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