What factors make it difficult to predict the growth rate of money supply and inflation?

Q: Why is the constant dollar often used by companies?

A: Constant currency is used to showcase a fixed exchange rate which helps in removing fluctuations…

Q: Since 1965, the U.S. economy has experienced how many economic contractions?

A: Since 1965, the U.S. economy has witnessed seven economic contractions so far.

Q: For the following situation, tell a story about what is likely to happen in labor and capital…

A: The labor market consists of employers and employees. The demand for labor arises from the…

Q: Which of the following can a country increase in the long run by increasing its money growth rate?…

A: The money spent by the consumers in the market will increases if the money growth rate of the…

Q: The interest rates are considerably higher in Turkey. How do you think the high interest rates…

A: Interest rates are one of the very important macroeconomic variables that have an effect on GDP, the…

Q: Discuss Role of central bank in the economic development?

A: Central Bank, which is the regulator of the currency plays an important role in the development of…

Q: What is the Inflation Rate and Interest Rate of Indonesia?

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

Q: What is the relevance of a particular business firm to the performance of macroeconomy?

A: The economics refer to the study of human behavior with respect to the limited availability…

Q: If GDP is currently running faster than potential GDP, can we say, based on that observation alone,…

A: Rapidly rising GDP above the potential level may or may not be harmful for the economy, it actually…

Q: State the conditions required for an increase in the growth rate of the money supply without…

A: Interest rate should be decreased,also taxes should be decreased.

Q: address the problem of an economic recession caused by high inflation, governments and central banks

A: An economic recession is a prolonged period of considerable fall in economic activity that often…

Q: Explain in details how high inflation can lead to a recession in several ways

A: Inflation refers to the rise in the general price level or the cost of the goods and services rises…

Q: What do you expect about the unemployment rate and inflation rate when we have the actual level of…

A: Actual level of output refers to the production of goods and services that are actually produced in…

Q: During the recession of 2008, Did the US Government take a page of the Keynesian Macro theory to…

A: Keynesian macro theory primarily identifies the role of government or government intervention in…

Q: Analyze hyperinflation and stagflation.

A: Hyperinflation is a time of quick rising expansion; stagflation is a time of spiking expansion in…

Q: Does it make sense that wages would be sticky downwards but not upwards? Why or why not?

A: Sticky wage is a concept of the labor market where the wages are set to a downward trend so that the…

Q: What are some barriers to the circular economy ?

A: An alternative to the typical linear economy is the circular economy (take, make, waste). It aims to…

Q: How do you think globalization has affected the economy over the past decade?  In your explanation,…

A: Globalization refers to the movement of goods and services accross the world. This implies when…

Q: How does globalization affect current economic trends in the United States and what problems does…

A: When there is unreasonable increase in the prices of the goods and services, it's called inflation.

Q: The primary goal of effective macroeconomic policies is to reduce uncertainty and risk in economic…

A: Note :- Dear student we value your previous time, since you have posted a question with multiple…

Q: A stable inflation rate is necessary to forecast business activities and make better investment…

A: inflation rate measures the rate at which inflation rises in an economy with respect to time.

Q: What issues is the FOMC concerned about that are impacting economic growth? What impact does the…

A: Central bank is the head of all commercial banks. There are many responsibilities that the central…

Q: What are business cycles? What are their consequences?

A: The economic fluctuations can be explained through the business cycle. This can explain the decrease…

Q: Summarize why changes in real GDP, unemployment, and inflation are desirable or undesirable. Please…

A: Changes in real GDP, unemployment, and inflation can have significant impacts on an economy, and…

Q: What caused stagflation? How did it affect the world economy in the 1970s?

A: It is an economic situation, where economic growth is slow and the inflation rate is high and having…

Q: From a truly free-market/capitalist perspective, how is inflation a beneficial process ?

A: Inflation: It refers to the increase in the price of goods and services. The increase in price leads…

Q: Using the ADAS diagram, show what happens to inflation, unemployment and GDP, if there is an…

A: Aggregate demand: It is the sum total of the final value of all the goods and services that have…

Q: Discuss the possible ways to compact inflation

A: Inflation refers to presistent rise in general price level. Due to inflation the purchasing power of…

Q: Based on the experience of Russia and China over the past few years, Western businesses are…

A: Thе govеrnmеnt budgеt is a financial statеmеnt that providеs a comprеhеnsivе ovеrviеw of thе…

Q: When did the British economy first feel the effects of the American-triggered great depression?

A: The great depression is the downturn of the world’s economy in the history of the industrialized…

Q: What are some drivers for companies to engage in the circular economy?

A: There are some drivers for companies to engage in the circular economy:- when companies start…

Q: Name 10 countries with the highest policy rate and the impact of the policy rate on their economies

A: The countries having the highest policy rates as of 2019 are listed in the table

Q: Why monetary policy and fiscal policy are important macroeconomic tools used to stimulate the…

A: Monetary policy is important to control the money supply in a economy . Inflation and interest rates…

Q: What are the effects of the exchange rate on the labor market in classical neoclassical and…

A: Keynesian theories advocated for government spending and expansion as the solution for fighting…

Q: The inflation rate has been low for years. In what ways might this be a bad thing for some in our…

A: Approach to solving the question:Debt Burden:Larger Real Debt: With low inflation, the value of…

Q: How did exploration lead to inflation in Europe?

A: Inflation occurs due to increase in money supply in an economy.

Q: What are the government policy has been implement to reduce the inflation issue in Malaysia ?

A: Inflation is an economic phenomenon that is characterized by a sustained increase in prices in an…

Q: What were the causes and consequences of the Great Recession?

A: The great depression as the name itself suggest is one of the greatest event in the history. It…

Q: Why governments / decision makers try to achieve the stable economic growth and lower inflation?…

A: When inflation rises, unemployment falls. When aggregate supply or aggregate demand increases,…

Q: Why do leaders of less-developed countries often run very large deficits and print entirely too much…

A: The budget deficit has occurred when the government spend more than the collection of revenue. There…

Q: Briefly explain in a paragraph or two why you would rather be a borrower during a period of…

A: During a period of unexpected rising inflation, it is generally advantageous to be a borrower.…