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A:
Q: d) Is the inflation rate that you've calculated likely to be biased? Why or why not?
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Q: Assume GDP is currently $10,800 billion per year and the quantity of money is $540 billion. a.…
A: Assume GDP is currently $10,800 billion per year and the quantity of money is $540 billion. a. What…
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Q: 33. Which of the following statements istrue? Almost all hyperinflations follow the same pattern…
A: Hyperinflation is a term used to describe rapid, excessive, and out-of-control price increases in an…
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A: The central bank of any country can decrease the money supply (contractionary monetary policy) to…
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A: The money supply is the aggregate sum of money — money, coins, and balances in ledgers — available…
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Q: with the aid of a well labelled diagram ,carefully expalin the impact on the money market if there…
A: The measure that depicts a general increase in levels of price in goods as well as services is known…
Q: Suppose the statistical office of a country does a poorjob in measuring inflation and reports an…
A: Measured inflation by statistical office = 4% Actual inflation rate = 2.5% Target inflation = 2%
Q: Q3. How the increase in money supply leads to increase in inflation? Explain your answer with the…
A: An increase in money supply in simple words means that people have more money to spend assuming that…
Q: differentiate three types of inflation.
A: Interest is defined as a chronic and sustained price rise caused by increase in the supply of money.
Q: When governments use monetary policies to make sure most citizens can find jobs, they are pursuing…
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Q: If the Federal Reserve decides to raise the interest rate to solve a potential inflation problem,…
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Q: N3 Give three reasons why a central bank may consider output to be a better target than…
A: Answer to the question is as follows:
Q: Explain why a fall in the purchasing power of money reflects a rise in inflation.
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A: Inflation refers to the increase in the general price level. The inflation is worrisome for the…
Q: In the long run, the key determinant of inflation is a. the money supply. b. real GDP. c. the…
A: Introduction its answer is d) the growth rate of money supply. Because inflation has determined by…
Q: How do the disinflationary policies differ depending on the causes of inflation?
A: On the off chance that a national bank chooses to force a more tight financial arrangement and the…
Q: Discuss what caused hyperinflation in Zimbabwe and if you think this could happen in The United…
A: Zimbabwe had huge debt.Due to huge debt,government printed more and more notes.Notes of even 1…
Q: What is the effect of inflation on the real value of money? a. Decrease b. Not related c. No effect…
A: Inflation: It is an increase in the general price level. It decreases the purchasing power of the…
Q: How to measure core inflation? How is it estimated?
A: Core Inflation is inflation measure that omits changes in energy and food prices. It is majorly…
Q: Different countries experience different types of inflation. Which type of inflation is mostly…
A: Inflation refers to an increase in the general price level of several major goods and services in an…
Q: Suppose growth rate of Real GDP is 6% and the growth rate of velocity is 3%. If we wants to have a 5…
A: Given, Real GDP growth rate = 6% Growth rate of velocity = 3% Inflation = 5%
Q: Develop your concept that what will be the effect of inflation on money if it is not invested. Also…
A: Inflation is the monetary process, where the normal price level of a commodity, increments over the…
Q: Differentiate between the General Inflation Rate and Specific Inflation Rate?
A: Inflation can be defined as a condition, when the demand for a particular good service upsurges…
Q: ow is the quantity theory of money related to inflation?
A: Answer is in step 2
Q: (c) Briefly explain the quantity theory of money and how it is related to inflation.
A: Money is an economic unit that serves as the economy's widely acknowledged medium of trade. Money…
Q: What effect would the discovery of gold that fuels inflation have on the money market? Illustrate…
A: In the mentioned question we are asked about the effects of the discovery of gold on fuels inflation…
Q: Using the quantity theory of money, suppose that this year’s money supply is $100 billion, nominal…
A:
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- 19. Contrast demand-pull and bottleneck inflation. Need ASAPThe menu costs of inflation A. occur because businesses need to change prices frequently. B. occur because inflation uses up shoe leather. C. occur because real interst rates rise. OD. are not a problem with anticipated inflation.12. Most business economists and analysts prefer to use measures of "core" inflation, which typically remove which of the following volatile components? O. Energy O. Food O. Housing O. Energy and Food
- 32. Which of the following best represents an out-of-control inflationary spiral? a.Disguised inflation b.Deflation c.Hyperinflation d.Disinflation. If you were to reject the classical dichotomy, then which of the following ideas wouldyou be more likely to reject?(A) Monetary neutrality.(B) Liquidity preferences.(C) The Cantillion effect.(D) Velocity is stable over time.Oil prices are on track to reach $100 a barrel this month for the first time in 2023 after surging by almost 30% sinceJune, after Russian and Saudi Arabian production cuts and rising demand from China.With many industries being heavily reliant on energy and transportation, what type of inflation would this leadto in South Africa?A. Demand-pull inflationB. Cost-push inflationC. StagflationD. HyperinflationWhat is one of the potential effects of the aforementioned inflation on the South African economy?A. Decreased purchasing power of money.B. Increased consumer savings.C. Reduced interest rates on loans.D. Higher demand for imports.
- 2. What is the eqution and shape of the modem aggregate supply curve according to imperfect infomation model? Using the equation of Aggregate Supply (AS) derive the equation of Expectation augmented Phillips curve and explain causes of inflation in tems of it. How does expectation augmented Phillips curve explain Stagflation?Retail Sales O Service industries QUESTION 10 Monetary inflation tends to redistribute wealth in the country in what ways? N from stable, solid citizens who are cautious savers to the prodigal who do not tend to save for their future O from the prodigal to the thrifty O from the government to the citizenry from large businesses to employees Click Save and Submit to save and submit. Click Save All Answers to save all answers. SaveWhich of the following situations would lead to actual inflation of 3%? A. future inflation is 1%; output-gap inflation is 0%; supply-shock inflation is 2% B. future inflation is 3%; output-gap inflation is 3%; supply-shock inflation is 3% C. future inflation is 1.5%; output-gap inflation is 1.5%; supply-shock inflation is 3% D. future inflation is 0%; output-gap inflation is 3%; supply-shock inflation is - 3% E. future inflation is 3%; output-gap inflation is 0%; supply-shock inflation is - 3%
- Oil prices are on track to reach $100 a barrel this month for the first time in 2023 after surging by almost 30% sinceJune, after Russian and Saudi Arabian production cuts and rising demand from China. With many industries being heavily reliant on energy and transportation, what type of inflation would this leadto in South Africa?A. Demand-pull inflationB. Cost-push inflationC. StagflationD. HyperinflationIdentify which of the following would cause cost-push inflation and demand-pull inflation. Indicate using separate diagrams for each. a. Depreciation of the rupee and its impact on oil price b. Expansion of the RBI balance sheet due to greater credit to government c. Extreme winters in Europe causing increased demand for coal d. Increased cash transfers in the form of unemployment allowance by the government e. Increase in the custom duty on raw materialIf natural unemployment rate is 5%, nominal interest rate is 7%, inflation is constant at 3%. The central bank adopts an expansionary monetary policy to reduce unemployment rate to 3%. According to EAPC with adaptive inflation, if the inflation rises to 6%, the likely long run outcome of this policy would be a. Real interest rate 3%, natural unemployment rate 3% b. Nominal interest rate 10%, natural unemployment rate 5% c. Nominal interest rate 9%, natural unemployment rate 3% d. Real interest rate 1%, natural unemployment rate 5%
