Mexico has made structural reforms that should help increase the nation s labor force productivity in the twenty-first century. According to monetarism, explain the effect these reforms should have, in the long run, on Mexico s inflation rate.

what does this famous quote from Hayek mean, "I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments."

b. Why do some people say that inflation is a tax? Who pays that tax? Who collects that tax? How does it work exactly? Does your answer depend on whether the world is best described by a general equilibrium (Classica economics) or disequilibrium (Keynesian)? c. Economists say that, in response to a wage rate increase, the overall labor supply may increase, decrease or remain unchained. Why aren't economists more certain about the consequences of something as simpl as a wage increase? d. The introduction of the ATM machine led to a period of price level increases. Why? Explain your answer intuitively. e. What is the "intertemporal labor substitution" effect (also known as the "Uber" effect)? Although you can use with a numerical example to illustrate your answer, make sure you explain it with words.

High inflation could be a problem to business firms. Explain THREE costs of inflation that could adversely affect business operations.

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

Country Y is experiencing severe and unanticipated inflation. Identify one fiscal policy action that could be implemented to reduce inflation. Identify an open-market operation that could be implemented to reduce inflation.

All of the following help an economy to get rid of persistent inflation, EXCEPT which one? O Price and wage control. Raise tax to reduce fiscal deficit. Maintain an independent central bank. Keep the growth rate of money low.