Explain what we can understand by expected inflation, inflation due to an increase in aggregate demand or inflation due to a decrease in aggregate supply.

Q: Explain the negative effects of high inflation

A: Please find the answer below.   INFLATION: Inflation is the rate of increase in prices over a given…

Q: Do you think that we should try to control inflation or that we should let the market take care of…

A: Inflation refers to a rise in the general price level of goods and services for particular period of…

Q: A central bank pledges to reduce the inflation rate from 10% to 3%. People reduce their inflation…

A: Inflation is the rise in average general price level over period of time . It reduces the value of…

Q: 15. During the 1960s, most economists believed that expansionary macro-policy Group of answer…

A: The correct statement is “Most economist believed that expansionary macro-policy that caused…

Q: Which should central banks focus on more, unemployment or inflation? Why? Please cite sources to…

A: A increase in the cost of goods and services throughout the economy is referred to as inflation. A…

Q: What is Inflation? How it is measured? What Fiscal and Monetary policies are generally adopted to…

A: Answer- Need to find- What is Inflation? How it is measured? What Fiscal and Monetary policies are…

Q: Based on the concept of demand-pull inflation, when the economy is at, or very close to,…

A: Demand-pull inflation explains the imbalance between the aggregate demand and the aggregate supply…

Q: Inflation is a general rise in the level of prices; however, our measures of inflation collect price…

A: Inflation is the rate of increase in prices over a given period of time. It is a broad measure such…

Q: An economy is currently experiencing inflation that exceeds the target rate set by the central bank.…

A: Inflation is a systematic measure of the rate at which the price level of a basket of goods and…

Q: Answer the attached question

A: The sustained rise in the price level of a selected basket of goods and services for a particular…

Q: Explain why a sudden, large burst of inflation could lead to a recession?

A: Inflation is the continuous rise in the price level of commodities in a nation over a period of…

Q: What prediction can you make about the inflation when a country is in war? Write your answer with…

A: The aggregate demand curve shows the negative relationship between price level and real GDP where…

Q: How do changes in aggregate demand and aggregate supply might cause inflation in the economy?

A: The aggregate demand is the summation of the demand from all the economic agents. There are mainly…

Q: Inflation is a negative macroeconomic phenomenon that distorts the economic behaviour of both…

A: CPI (consumer price index) gives the changes in the price level for a specified basket of consumer…

Q: What do you mean by hyper inflation. Explain in brief ?

A: Inflation: Inflation is an economic concept that is defined as a rise in the general price level of…

Q: Inflation is one macroeconomic phenomenon that policy makers watch closely and intervene to bring it…

A: ANSWEE   Disinflation occurs when there is deep recession leading to a sustained fall in demand .

Q: Explain in detail the differences between demand-pull inflation and cost-push inflation and their…

A: Inflation is continuous rise in general price level which reduces the purchasing power of people.…

Q: Suppose that government decides to support the firms for their investments in research and the…

A:

Q: The great economist Milton Friedman has said that “inflation is always and everywhere a monetary…

A: Inflation is defined as the rate at which prices rise over time.  Inflation refers to a broad…

Q: Suppose an economy has a high rate of unemployment and a high rate of inflation. What kind of policy…

A: The measure that depicts a general rise in the price level of goods and services during a specified…

Q: What is the difference between demand- pull and cost-push inflation? Discuss two mechanisms that…

A: Inflation refers to a rise in the general price level over a period of time. It results in a…

Q: Describe the fiscal and monetary measures that are normally taken to curb inflation.

A: FISCAL MEASURES 1- The two main important tool of fiscal measures are revenue an dtaxes. 2- To…

Q: Define Inflation. Explain why inflation is a macroeconomic concern

A: Inflation is caused due to increase in the money supply.

Q: Which of the following is the most correct statement about the relationship between inflation and…

A: The Phillips Curve shows that tehre exists an inverse relationship between inflation and…

Q: Suppose that government decides to support the firms for their investments in research and the…

A: Increase in productivity decreases production cost, so aggregate supply will rise, shifting SRAS…

Q: Using appropriate diagrams, explain the difference between demand-pull and cost- push inflation.

A: Inflation:  Inflation is simply the rise in the general price level of goods and services over a…

Q: Inflation can be caused either by rapid growth rate of aggregate demand or by sluggish growth of…

A: An economy attains equilibrium when aggregate demand is equal to the aggregate supply.

Q: Everything else held constant, a change in workers' expectations about inflation will cause to…

A: If workers expect a change in future inflation, then it does have some implications.

Q: Answer the question: What is the importance of understanding the inflation rate surges?

A:

Q: The cost of inflation reduction is a large, permanent increase in unemployment. true or false

A: The Phillips curve basically depicts the relationship between inflation and unemployment, and the…

Q: Purchases made now to avoid higher future prices can lead to: a. expectations inflation. b.…

A: Inflation is a general rise in the price level in an economy over a period of time.

Q: What are 3 examples of theoretical causes of inflation in the short run?

A: The inflation is the rise in the overall price level in the economy.

Q: what are positive and negative effect of demand pull inflation with explanation

A: Inflation is the process of abnormal hike in the general price level of the economy. This means that…

Q: What can be used to reduce aggregate demand and helps to control demand pull inflation?

A: Demand pull inflation is a situation when inflation is created due to shortage of supply of goods.…

Q: What is the difference between cost-push inflation and demand-pull inflation? Explain the…

A: Meaning of Demand-Pull Inflation  Demand Pull Inflation emerges when the total demand goes up…