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yes because less employment cause inflation
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∙ 12y ago
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What is pure monetary theory of business cycle?
It is propounded by hawtrey an economist,acc to him business cycles are nothing but succesive phases of inflation and deflation.money supply affects the business cycle.
Expansion (business cycle)?
the economy starts growing again and towards the end of this cycle the economy overheats and inflation rises
What leads to the end of a boom period in a business cycle?
A reduction in consumer demand resulting from inflation.
When the expansion of the economy and the inflation that goes with it stop the business cycle has reached a?
Peak or a high point.
Real GDP is not changing at all, unemployment is about 8%, and inflation is steady. Where in the business cycle is the economy?
trough
What are some goals of federal economic policy?
smoothing out business cycle growth low inflation high savings rate
Real GDP is rising at a 5% rate, unemployment is at 6% and falling, and inflation is rising at about 2% per year. Where in the business cycle is the economy?
expansion
What are problems associated with the business cycle?
high level of inflation,unemployment,random shocks,changes in taste,decrease in consumption and lack of new capital
What are the economic factors affecting a business environment?
Economic factor that affect businesses: 1. Income 2. Inflation 3. Recession 4. Interest Rate 5. Exchange Rate There are four major elements that affect business environment. The elements are: 1. Economic growth 2. The business cycle 3. Employment and unemployment 4. Inflation
What are the economic factors affecting business environment?
Economic factor that affect businesses: 1. Income 2. Inflation 3. Recession 4. Interest Rate 5. Exchange Rate There are four major elements that affect business environment. The elements are: 1. Economic growth 2. The business cycle 3. Employment and unemployment 4. Inflation
What has the author Peter N Ireland written?
Peter N. Ireland has written: 'Endogenous money or sticky prices?' -- subject(s): History, Monetary policy, Money supply, Prices 'Sticky-price models of the business cycle' -- subject(s): Business cycles, Econometric models, Environmental protection, Inflation (Finance), Prices 'Money's role in the monetary business cycle' -- subject(s): Business cycles, Demand for money, Econometric models, Inflation (Finance), Money supply 'Technology shocks in the new Keynesian model' 'Changes in the Federal Reserve's inflation target' -- subject(s): Federal Reserve banks, Inflation (Finance), Mathematical models 'Stochastic growth in the United States and Euro area' 'On the welfare cost of inflation and the recent behavior of money demand'
What are the recent challenges in business?
Inflation
