how should policy makers respond to unemployment, inflation and decreased output

Q: What is the macroeconomic policy and how does it impact the United States and the world?

A: Macroeconomics is the study of the subject economics but at an aggregate level. The study of…

Q: Which perspective is better suited to handling the inflation we face today? Keynesian or…

A: Finding a balance between Keynesian and Neoclassical models is like to riding two horses at the same…

Q: compare between demand pull and cost push inflation

A: Inflation: It is the situation when there is a rise in the price of goods and services that leads to…

Q: How rising commodity prices and wages might lead to cost-push inflation?

A: Inflation is defined as the rise in the general price of all the goods and services in the economy…

Q: Solutions for inflation in pakistan

A: Inflation: - it the phenomenon of increase in the prices of goods and services in an economy.

Q: Identify several parties likely to be helped and hurt by inflation.

A: During unanticipated inflation occurrence of any redistribution of wealth and income is the…

Q: Discuss policies that the government could use to combat the impact of inflation.

A: Inflation is the gradual increase in the price level over a certain time period. Inflation tends to…

Q: Which is more important Low inflation or Stable prices?

A: Inflation: The term inflation refers to the general increase in the price of goods and services in…

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: In what way can inflation distort purchasing power over time for individuals?

A: The economic growth of an economy is generally measured as the growth rate of GDP over time. GDP is…

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: should the government emphasize full employment, and should the central banks prioritize…

A: Unemployment refers to people who are employable and actively looking for work but can't find one.…

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: 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 causes the rate of inflation in macroeconomics?

A: Inflation reflects a constant rise in the price level over time or it is a sustained increase in the…

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: Why might the Coronavirus pandemic cause inflation?

A: Inflation is characterized by a situation when there is a continuous rise in prices, indicating a…

Q: What is happening to inflation in the US economy?

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Which of the following best represents a combination of inflation, slow economic growth and high…

A: The economies around the world work with the main motive of enhancing their overall growth, which…

Q: High and unexpected inflation has a greater cost

A: Inflation is always worse for the normal people.

Q: What can be a reason why inflation is not occuring when government spending increases in an economy?

A: inflation refers to the sustained rise in the general price level. It is the general rise in the…

Q: Fill in the blank economics studies the problem of inflation in an economy.

A: Inflation what we can say generally in simple words that it is the rise in the price of the goods…

Q: How does each policy handle the two major macroeconomic failures of unemployment and inflation

A: Considering macroeconomics, it talks about the economy as a whole and not an individual. The major…

Q: Why rising commodity prices and wages might lead to cost-push inflation?

A: Inflation, in economics, is defined as an increase in the general price level of all the goods and…

Q: Is inflation targeting always good? What if we want to keep unemployment low?

A: Inflation targeting has been established in the majority of nations worldwide. The primary duty to…

Q: If wages on average rise at least as fast as inflation, why do people worry about how inflation…

A: Inflation refers to the hike in the price of goods and services over a given period of time which…

Q: If actual inflation is more than expected inflation,

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Why do workers, firms, banks and investors in macroeconomics care about the future rate of…

A: Inflation refers to persistent rise in prices. Inflation erodes the purchasing power. Due to…

Q: Do you think the Phillips curve is a useful tool for analyzing the economy today? Why or why not?

A: А  Рhilliрs  сurve  deрiсts  thаt  there  is  а  trаdeоff  thаt  exists  between  the  rаte  оf…

Q: In the long run when governments attempt to target unemployment below the natural rate we can expect…

A: Answer - 1. Inflation - When government try to bring unemployment below " natural rate " . It must…

Q: how does the fiscal policy and monetary policy handle the major macroeconomic failures of inflation?

A: Fiscal policy is the economic policy that entails policy tools include spending by the government,…

Q: Why do sticky wages and prices increase the impact of an economic downturn on unemployment and…

A: In the short run, wages and prices are sticky which implies that they do not respond to any changes…

Q: Why should the government not try to make inflation zero?

A: Inflation is the rise in the overall level of prices in an economy.

Q: Describe Inflation and how it is measured? Ascertain the Fiscal and Monetary policies that are…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Can inflation can only be controlled by increasing productivity?

A: Inflation refers to the continuous increase in general price level in the economy.

Q: Which topic is more important fighting inflation or fighting a recession?

A: Inflation is the measure of increase in price level of a basket of consumption goods and services…

Q: What is the job of balancing control over unemployment and inflation, and why is it important?

A: Unemployment and the inflation both are the major factors that can hamper the economy. The pressure…

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

A: Inflation is the continuous rise in prices due to increased money supply in the market.

Q: Persons who argue against the deliberate use of fiscal and monetary policies to smooth out the…

A: A cycle consisting of expansions and contractions in the aggregate economic activity of a nation is…