Why do you think it is important that prices are flexible in our economy? Do you think they reflect the true price of what buyers and sellers are asking in the market?

Q: Suppose you have 6000 dollars in savings when the price index is at 100 (a) If inflation pushes the…

A: a) As the price level goes up by 10%, the real value of the savings goes down that is the real value…

Q: how does distortions affect the market of tradable and non-tradable goods?

A: Market distortions: It refers to the intervention of the government that affects the price and…

Q: Discuss clearly how the following items may affects the change in demand.  Population change…

A: Given the following items that may affects the change in demand.  1) Population change.  Increase in…

Q: Which of the following events is likely to increase unemployment and drive the price level down?…

A: Unemployment refers to a situation in which the people of a nation who are ready and able to do a…

Q: Imagine you are an economics professor in a world without money. Explain why it would be tricky to…

A: Money has important functions which are described as below: Money acts as a medium of exchange. The…

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: If there is no change in circumstances, what is the only factor that will increase commodity prices?…

A: Demand implies the quantity demanded of a product at each price level.  Supply implies the quantity…

Q: By how much did the pace of tuition hikes exceed the 2016 average rate of inflation?

A: Inflation can be defined as a general increase in prices and a fall in the purchasing power of…

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: To combat recessions and depressions, which should have priority: unemployment or debt reduction?…

A: Definitions: Depression is a prolonged downturn in the economy, while the recession is a temporary…

Q: The supply chain is a convenient notion, but organizations are only really interested in making…

A: The movement and storage of raw materials, work-in-process inventory, and finished items, as well as…

Q: What does the phrase “inflation is always and everywhere a monetary phenomenon” mean?  Printing more…

A: Changes in the money supply and price level are directly related. Increase in money supply increases…

Q: What effects do you think monetary policy and fiscal policy has on the day-to-day operations of a…

A: Economic policy refers to the measures that governments do in the economic system. It includes…

Q: Why are budget cuts a good thing?

A: A budget cut refers to a decrease in the amount of a budgeted expenditure within a government or a…

Q: Propose how you think unemployment can be reduced in South Africa?

A: Unemployment is the term used to define the scenario, where a person activity looking for job is not…

Q: How severe was the great recession? What pieces of economic data would you cite to support the…

A: The great recession is the global downturn in the economy starting from 2007 to 2009 after the…

Q: what product would people around the world demand more of during tough economic times, and more…

A: During recession, people spend their incomes on higher education. According to the UNESCO, student…

Q: Please answer the given four questions related to the market for loanable funds. What effect will an…

A: Hey, Thank you for the question. According to our policy we can only answer 3 sub parts per…

Q: There are periods of time in the economic cycle when markets are neither expanding nor declining and…

A: An economy goes through phases of both development and periods where economic activity is low. Thus,…

Q: Write a Position Paper about the bill “No Assignment Policy”. - introduction - body - conclusions

A: Introduction:-  It is really a T.G.I.F for students in essential and optional government funded…

Q: If the spending in the economy are too high, how will they compete to support their spending?

A: The high spending implies that economy has too high aggregate demand. The aggregate demand might…

Q: What are the goals of economic policy? Describe each briefly. What policy options does the…

A: goals of economic policy are -  1) higher growth and development  2) price stability that is check…

Q: Will real wages start rising? If they don’t, should the central banks be raising the interest rate?…

A: If the real wages start rising, then there would be expansionary in the spending and even ability's…

Q: Explain why it's important that prices are flexible in our economy.

A: Flexible pricing makes the potential of a more efficient marketplace suddenly realizable. When…

Q: Why did the housing market get so cheap during the economic crash

A: Housing market plays an important parts in country's economy. Housing prices effects the economic…

Q: What happens to the weight attached to food over time in most countries?

A: The CPI is the consumer price index. It measures the weighted average price of a basket of consumer…

Q: Is it possible for there to be inflation present in the economy and still witness a decline in a…

A:

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: 6. What change in government spending (airports, police, teachers, roads, etc.) would reestablish…

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

Q: Which of the following roles of the government is most fundamental to a society's ability to…

A: The roles of the government that is most fundamental to a society's ability to function safely and…

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.