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Why did the nation faced problems under the articles of confederation?
The people faced problems with inflation high state taxes rebelilon and unrest
How did the articles of confederation handle inflation?
It never really spoke of the actual issue of inflation, but it did allow the states AND the central government to print money. This caused confusion and a high inflation since there were over 20 forms of currency circulating the U.S.
Why was it so difficult to find an effective solution to inflation problems between 1964 and 1983?
It is due to the nature of economic policy. Normally inflation and unemployment are inversely related, so policy decisions can be made to cure one at the expense of the other (for instance, raising of interest rates lowers inflation but risks stifling business growth). During the period between 1964 and 1983, we experienced "stagflation" (high unemployment AND high inflation). So when we experience both at the same time, policy makers have their hands tied as to what to do. If they decide to try to get inflation lower, they risk making unemployment worse (and it's already bad) and if they try to get employment lower, they risk making inflation worse.
List three problems faced by weimar republic?
three problems faced by the weimar republic was the treaty of Versailles, inflation and defeat.
Renaissance Art had different periods What where they called?
Early Renaissance, High Renaissance, Mannerism.
What assets should you own in high inflation periods?
We are heading into a period of high inflation due to the impact of oil costs. What are stocks that will survive this - other than the obvoius - Oil stocks! fgfgfgf
Would the classical model of the price level be relevant if there is a great deal of unemployment in the economy and no history of inflation?
No - The classical model is only realistic during periods of high inflation, because the stickiness of nominal wages and prices rise. This results in the Aggregate Supply Curve shifting left to it's next long-run equilibrium level much more quickly than during periods of low inflation.
How does inflation affect saving and investing?
During periods of high inflation, investors generally try to preserve purchasing power by seeking returns that keep up with inflation. Equity (stock) markets generally perform poorly in periods of high inflation with the exception of stocks of companies that benefit from inflation (like commodity companies). The Dow Jones Industrials average was basically flat in the 1970's when inflation was high. Yields on fixed income securities (govt bonds and corporate bonds) usually rise with the corresponding increase in inflation since fixed income investors need a premium over the rate of inflation for a 'real' rate of return. For example, a bond investor that requires a 5% return in a 3% inflation environment will require 7% in a 5% inflation environment. The Investopedia link below has a basic article on this topic.
Why would interest rates go up if inflation is high?
no
What fiscal policy would cure high inflation and high unemployment?
A fiscal policy that focuses on job creation would cure high inflation and high unemployment. Implementing projects like road and bridge construction would improve employment rates.
Which was the decade of high inflation and high unemployment?
Which was the decade of high inflation and high unemployment
What functions of money would be violated if inflation were high?
store of value
What is the conclusion of inflation?
As prices rise, inflation also increases; supply increases and demands of people decrease because of high prices.
What factors affect wealth of households?
too high inflation rate would decrease the purchasing power of the money in those unemploied people
What factors affect household wealth?
too high inflation rate would decrease the purchasing power of the money in those unemploied people
What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
