All of the following help an economy to get rid of persistent inflation, EXCEPT which one? Price and wage control. Raise tax to reduce fiscal deficit. Maintain an independent central bank. Keep the growth rate of money low.
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A scenario known as persistent inflation occurs when an economy's overall price level rises over an extended period of time. It hurts an economy because it makes money less valuable, breeds uncertainty, deters investment, and prevents economic expansion
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- What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays its bills by printing more money. As the newly printed money works its way through the economy, it waters down the value of paper money already in circulation. Thus, it takes more money to buy things. Budget deficits are the major cause of inflation."Syria’s economic situation is getting worse. Price levels are increasing significantly as the flow of supplies remain low. How can the level of inflation be controlled in a situation like this? a. Increase aggregate demand by expansionary fiscal policy b. Increase money supply by decreasing bank reserve requirements c. Increase tax collections to limit aggregate demand d. Increase aggregate supply through importation of necessary goodsIf the government wanted to reduce inflation in the economy, it could: a. Increase income transfers b. Increase government spending c. Cut taxes d. Increase taxes
- state reasons why voters should care about high inflation and it's logical justification and reasons.how the government somewhat address the issue of inflation? explain.If the government loan money to the central bank with a huge amount the effect of this action will result to the _____ of inflation *
- An increase in the overall level of prices in an economy is referred to as Select one: a. economic growth b. inflation. C. supply O d. monetary policy“state three reasons why voters should care about high inflation and evaluate the merit of the arguments"Explain the various measures to control inflation in an economy
- Which policy measure may reduce demand-pull inflation but increase cost-push inflation? Pick a,b,c, or d A. A rise in government spending on training B. A decrease in import tariffs C. A rise in the rate on interest D. A decrease in corporation taxOne of the fiscal measures of dealing with inflation is: a. Implement a budget surplus b. Operate a budget deficit c. Increase the rate of interest d. Operate a balance budgetA study conducted by Alberto Alesina and Lawrence Summers concluded that countries with ________ had lower inflation rates than countries with ________. Group of answer choices A. highly independent central banks; central banks that have little independence B. low rates of unemployment; high rates of unemployment C. no private banking system; an independent banking system D. a large government debt; little to no government debt
