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- Which of the following will NOT cause inflation to increase in home country? An increase in the aggregate demand An increase in the cost of production An increase in the unemployment rate An increase in the prices of imported goodsMark Lai, a student of agricultural science in the developing country Mikatra, notes that the demand for rice increased substantially over the last ten years. He attributes this to the substantial growth in population during this period. Although rice cultivation in Mikatra is still labor-intensive, Mark observes that the inflation-adjusted wages for farm workers in the rice industry have more or less remained constant during this period, even though the supply of rice increased. This was contrary to Mark's expectations as inflation in Mikatra during this period was not very high. Which of the following, if true, is most likely to explain this outcome? A.Rice and other cereals form a smaller proportion of the food budget of higher-income individuals. B.The government of another major rice-producing country, Langun, subsidizes its rice farmers to keep its prices competitive in the global market. C.The government of Mikatra has recently set a price floor in the wheat market. D.Following…Assuming prices and output are somewhat flexible, a decrease in investment will cause inflation to __________ in the short run and growth to ___________ in the short run. increase/decrease increase/increase decrease/increase decrease/decrease remain unchanged/decrease
- large or persistent inflation is almost always caused byHow do you think the GDP, the unemployment rate and the inflation rate are related to each other in the emerging markets? Do you think these relationships are different in the Turkish context? Explain. The interest rates are considerably higher in Turkey. How do you think the high interest rates affect the ĠDP, the unemployment rate and the inflation rate? Actions that can be defined as contrary to publication ethics in the scientific community are defined as follows; - plagiarism, paraphrasingInflation is defined as a sustained increase in the price level. is this true or false?
- Benefits and advantages of inflation and deflation in the economy.There is a ________ association between inflation and the growth rate of money ________. A) positive; demand B) positive; supply C) negative; demand D) negative; supply Everything else held constant, a stronger dollar benefits ______ and hurts ________. A) American businesses; American consumers B) American businesses; foreign businesses C) American consumers; American businesses D) foreign businesses; American consumers Financial markets have the basic function of A) getting people with funds to lend together with people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) providing a risk-free repository of spending power. Which of the following can be described as involving indirect finance? A) You make a loan to your neighbor. B) You buy shares in a mutual fund. C) You buy a U.S. Treasury bill from the U.S. Treasury at Treasury Direct.gov. D) You purchase…When the economy is weak, fear of losing jobs cause consumers to cut back on spending. True False
- Myanmar experienced a 60 percent currency dropped within four weeks as the economy tanks since early of this year. This is due to the country facing a military coup since February 2021, which has led to political instability and the second wave of coronavirus infections in the country. The World Bank predicted the economy would slump 18 percent, which lead to the employment contraction and an increase in the number of poor. As an economist, analyze the fiscal and monetary policy tools that can be implemented to overcome the recession in Myanmar.If the government is concerned about high inflation, it will likely implement some sort ofIn the 1970's, Toyota was able to increase its American sales despite interest rates on auto loans surging as high as 17.5%.In contrast after 2007 , auto loan rates fell to their lowest levels in History;car sales also declined.Explain why?(Hint:examine the connection between inflation and interest rates on loans)