If the government loan money to the central bank with a huge amount the effect of this action will result to the _____ of inflation *

Q: In 2003​, the Canadian economy was close to full employment.   Real GDP was $1,000 billion.   The…

A: According to the quantity theory, (M x V) = (P x Y).

Q: How to reduce / maintain the inflation rate of the country at its best level ( in 6 way with example…

A: Six ways to reduce and keep the inflation rate of a country within the desired level are discussed…

Q: Consider an economy that starts out in steady state when the central bank decides to make the…

A: Inflation:- Inflation refers to decrease in purchasing powers to currency due to increase in price…

Q: Explain the two ways to measure inflation

A: Inflation is the decrease in a given currency's buying power over time. Quantitative estimation of…

Q: refers to the specific amount of money circulating in a country's economy at a particular period of…

A: In the economy. Money is used as a medium of exchange because it is widely accepted in exchange of…

Q: complete the following sentence: There is a ________ association between inflation and the growth…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: Develop your concept that what will be the effect of inflation on money if it is not invested. Also…

A: The general price level is the price level where the aggregate demand is equal to the aggregate…

Q: Suppose that the economy of a country is experiencing inflation and the central bank wants to cool…

A: The following problem has been analyzed as follows:

Q: Which policy measure may reduce demand-pull inflation but increase cost-push inflation? Pick a,b,c,…

A: Demand-pull inflation is the growing price pressure that comes with a supply shortage, which…

Q: Explain the two costs of inflation from the perspective of economists

A: Meaning of Inflation: Inflation generally arises when there is an excessive increase in the level…

Q: Is it possible for the central bank to control inflation despite a spike in the CPI? *please explain

A: Central bank is  the apex bank which controls and regulates the entire monetary structure of…

Q: Insert the missing word or phrase: 1. _____ _________ _________ - the increased costs associated…

A: Answer: 1. Shoe leather cost- the increased costs associated with making transactions that arise…

Q: In theory, inflation not only ______ the value of consumers' money over time, but it also increases…

A: The effect of price change or Inflation can be seen on both the participants that are the consumers…

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

A: The Phillips curve represent the relationship between the inflation and the unemployment and there…

Q: Inflation, Disinflation, and Deflation – End of Chapter Problem Country Inflation in 2019 Money…

A: Answer: Inflation tax: It refers to the fall in the value of money held by people due to inflation.…

Q: The simple solution to fighting inflation is reducing the growth rate of the money supply  true…

A: We know that growth rate of money supply is positively related to inflation. This means that if…

Q: Inflation targeting a strategy in which the central bank pursues   a. a certain numerical…

A: Central Bank implements monetary policy for different purposes according to the needs of the economy…

Q: What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays…

A: Assume that the government is running a budget deficit in the economy. It means the government…

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: What type of inflation is likely to occur if labor costs increase? a. Built in inflation b.…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: Briefly describe what is meant by the non-accelerating inflation rate of unemployment (NAIRU)

A: Employment is a situation in which job opportunities are available, and people are having jobs.…

Q: How does the bangko sentral ng pilipinas controls and intervene in the inflation rate of the country

A: The Bangko Sentral ng Philipinas (BPS) is the central bank of the Republic of the Philippines.…

Q: Which type of inflation is considered good for the economy and why? Explain you answer using one…

A: Inflation is defined as the overall increase in the price level in the economy. The rate of…

Q: Which of the following statements about inflation is​ true?   A. Inflation is not a problem because…

A: Presistent rise in price level results in inflation. When the expenditure of government exceeds its…

Q: How does Philip's Curve Theory applies to the relationship of Inflation Rate, Employment Rate and…

A: Inflation and unemployment have a stable and inverse relationship, according to the Phillips curve,…

Q: "Inflation tax" means that: Select one: a. as the price level rises, taxpayers are pushed into…

A: Inflation refers to the general increase in the price level in the economy. One of the major reasons…

Q: Which costs of inflation could the government reduce without reducing inflation?   a. arbitrary…

A: Price changes can result from changes in consumer expectations, changes in the price of inputs,…

Q: When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to…

A: Inflation can be defined as a rise in the overall price of all products and services in an economy…

Q: Explain how inflation can be “built into the system.

A: Inflation is nothing but increase in the price level of an economy.

Q: Identify and briefly describe some statistical index to measure the effects of inflation

A: Inflation alludes to changes over the long haul in the general degree of prices of labor and…

Q: Which of these is not a factor that causes demand-pull inflation? a. Private consumption b.…

A: Demand is the sum of the total quantity of commodities that the consumers are willing to purchase at…

Q: Define inflation. Explain why inflations needs to be managed

A: The economics as a study is a vast area of study which is based upon the basic idea of scarcity of…

Q: ntral bank sells government securities from the private sector-money markets other things being…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Whenever the inflation rate is released by the BLS, they publish both the headline rate and the core…

A: By Headline Inflation we mean the total inflation for the period comprising a basket of commodities.…

Q: There is a ________ association between inflation and the growth rate of money ________. A)…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt first question. If…

Q: Inflation is always present, to some degree, in economic systems. (a) Define inflation; (b) explain…

A: a) Inflation refers to the falling purchasing power of a currency over a period of time. When the…

Q: (a)‌Discuss‌ ‌TWO‌ ‌(2)‌ ‌types‌ ‌of‌ ‌unemployment‌ ‌and‌ ‌provide‌ ‌a‌ ‌relevant‌ ‌example‌ ‌for‌…

A: Unemployment occurs when the people belonging to the labor force of an economy are willing to work…

Q: Use the macroeconomic theories explained in the course to write a paper explaining how the Canadian…

A: The Bank of Canada is attempting to tackle the emergency of the pandemic by making credit affordable…

Q: The new chairman of the Ionian Central Bank (ICB) is preparing for her first board meeting. She is…

A: The monetary policy is the policy of the monetary authority of the economy regarding the money…

Q: High inflation could be a problem to business firms. Explain THREE costs of inflation that could…

A: Inflation is the increase in the overall price level where a currency unit essentially buys less…

Q: Which of the following economic changes are consistent with cost-push inflation? (More than one may…

A: Cost-push inflation is caused when an increase in the price of a vital resource input(s),…

Q: Increased inflation during the 1970s was due primarily to quizlet a. increased government spending…

A: Answer - Need to find- Increased inflation during the 1970s was due primarily to quizlet Evaluating…