Should we try to increase inflation to end the Great Recession?

Should we try to increase inflation to end the Great Recession?
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1 Answer

Answer :

You know, I find it almost impossible to get involved in a theoretical debate when this Congress can’t or won’t do anything constructive.
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Last Answer : (2) inflation Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and ... few goods", since only money that is spent on goods and services can cause inflation.

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Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation

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Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.

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When too much money is chasing too few goods, the situation is (1) deflation (2) inflation (3) recession (4) stagflation

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Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation

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Marketing strategy during a recession should include 1. a reduction in the number of sales personnel 2. a reduction in the expenditures for new product development 3. a reduction in advertising ANS:- 4 4. promotional efforts that promote value and utility 5. increase in expenditures for marketing operations

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What reduced sharp inflation in Russia after the end of the Soviet Union?

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Is it possible to keep the ecomomy at constant growth or are we always doomed to a recession?

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Are we in a double dip recession here in the US?

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Are we in a double dip recession or is it just slow growth?

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Will we have a double dip recession in 2010?

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Crisis is the mother of innovation - What good can we expect as a result of the current severe recession?

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Last Answer : The best result I have noticed is the decrease in the demand for gasoline.

Are we in a recession or are we going towards one?

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Last Answer : answer:Why does it matter? With inflation being allowed to continue, the impact is the same either way. Here is the May CPI and Motley's Fool's two cent's worth on it: The evidence is ... 19 $1.37 15% Source: US Bureau of Labor Statistics. Liquids by the gallon, other commodities per lb.

Can we prevent the recession?

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Last Answer : I can’t help but wonder if we should even be trying. It seems a natural part of the ebb & flow of economics. In many ways, it’s a correction mechanism and artificially preventing that seems to bring on its own risks.

8. Immediately after a trough, we would expect to have a/an a. peak b. recession c. recovery

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If raising minimum wage will kill businesses and and increase inflation, then wouldn't reducing the earnings of the people at the top of corporations have the opposite effect?

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Last Answer : Ooooooo snap!

During periods of inflation, tax rates should - (1) increase (2) decrease (3) remain constant (4) fluctuate

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Last Answer : (1) increase Explanation: In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. In other words, inflation means continuously ... To control inflation there should be an increase in the tax rate and increase in the interest rate.

Which of the following can be used for checking inflation temporarily? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these

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Last Answer : (2) Decrease in money supply Explanation: An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. India ... those in the other developed countries. Economists claim that an increase in money supply alone constitutes inflation.

Inflation is caused by - (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production

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Last Answer : (1) increase in money supply and decrease in production Explanation: Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of ... few goods. The increase in money supply is not matched by the equivalent production of goods.

Inflation is caused by certain factors 1. Those causing an increase in demand 2. Those a short, fall in supply 3. Structural rigidities in the economy 4. All of these 5. None of these

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Last Answer : Those causing an increase in demand

During the construction period, price variation clause in contracts caters to (A) Increase in rates of only important materials (B) Variation in cost in materials element, labour element and petrol-oil-lubricant element (C) Variation in total cost of the project on an ad hoc basis (D) Rate of inflation

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Last Answer : (B) Variation in cost in materials element, labour element and petrol-oil-lubricant element

If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

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An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic

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Last Answer : (b) If aggregate supply is completely inelastic

Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.

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Which of these is one of the causes of inflation? (a) Increase in public expenditure ; (b) Deficit financing ; (c) Increase in administrative prices (d) All the three

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Last Answer : (d) All the three

Cost push inflation arises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in price of precious metal

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Last Answer : (a) Persistent rise in factor cost ;

Demand pull inflation rises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in Price of precious metal

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Last Answer : ; (b) Mismatch between demand and supply of commodities

Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth

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Last Answer : (c) Increase in real rate of interest ;