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What three things might the government do to correct inflation?
Wiki User
∙ 10y ago
its not isolate the country from international trade.
Wiki User
∙ 13y ago
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How might a reduction in taxation help macro economic aims of government?
A reduction in VAT taxation might lead to price stability and hence it'd be an effective measure to prevent inflation/deflation.
Why do Governments and economists worry about inflation?
Inflation is a general and sustained rise in the level of prices over two financial quarters in an economy. The government is worried about inflation because it has negative repercussions on its ability to achieve its macro- economic objectives. For example, inflation could result in higher unemployment. Firms seek to cut costs during a period of inflation and could lay off workers.
Why an increase in income does not necessary mean an increase in welfare of the people?
There are many reasons why this might be the case; one of the simplest is inflation (meaning increase in how much things cost). If the rate of inflation is higher than the rate of increase in income, then you have more money but it buys less.
Why might a government intervene in the market economy?
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
Why might it be a bad idea to create money to cover budget deficits?
Printing money to cover deficits creates inflation. This raises interest rates and prices which usually leads to more government expenditure and larger deficits.
Why might a government wish to create?
A government might wish to create things they feel the people might need. These are things such as jobs or new infrastructures where they are needed the most.
What are things you might want to measure using percent of change?
Two examples that spring to mind are inflation and population growth.
How might a reduction in taxation help macro economic aims of government?
A reduction in VAT taxation might lead to price stability and hence it'd be an effective measure to prevent inflation/deflation.
Why a student fails to do things right?
There are various reasons that a student might fail to do things right. They may not have a correct understanding.
Why do Governments and economists worry about inflation?
Inflation is a general and sustained rise in the level of prices over two financial quarters in an economy. The government is worried about inflation because it has negative repercussions on its ability to achieve its macro- economic objectives. For example, inflation could result in higher unemployment. Firms seek to cut costs during a period of inflation and could lay off workers.
Why an increase in income does not necessary mean an increase in welfare of the people?
There are many reasons why this might be the case; one of the simplest is inflation (meaning increase in how much things cost). If the rate of inflation is higher than the rate of increase in income, then you have more money but it buys less.
What main things might travelers like to see in the tertiary period?
they might want to see the animals, plants, geography, and other things that might have changed from then to now........... this is a correct answer...... also.... hi internet and people on the internet :D
How might investors use the Producer Price Index?
to predict inflation
Should the government do more to increase public broadband internet?
When you are at school and they block some things and you might need them things they block.
Any idea which are the most affected countries due to inflation?
You might want to check out Zimbabwe's inflation rate and check out what is happening in that country at the moment. latest inflation rate 2.3million% most places run at 4%
Why might a government intervene in the market economy?
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
How do you change about me?
You might change certain things about you by meditating or studying to better yourself. You could also change things about yourself by consciously trying to correct bad habits.
