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What is the relationship between inflation and money supply?
Money itself, as it is used in today, is an idea only. When money isn't backed by something solid it is less valuable than previously and causes things to cost more because of the lack of solidity of the money as it is only an idea and everyone is trying to capture the idea and make it concrete. Perhaps also because if there is more money in circulation in theory people have more money to spend, therefore they can afford to spend more.
Is running a taxi business a good idea in this economy?
No, running a new taxi business is not a good idea in this economy. There is too much competition out there, and it would cost too much money to start up, then what you would profit.
Do most economists believe that money neutrality has a significant impact on the economy?
Most economists believe that money neutrality, the idea that changes in the money supply do not affect real variables like output and employment in the long run, has a significant impact on the economy.
Which is the worse macroeconomic problem for t economy higher inflation or higher unemployment?
Inflation is worse than recession. Recessions end. Inflation is the most powerful force in the world and it keeps on keeping on. Inflation in the U.S., for example, has decreased the value of the dollar 84% since the beginning of 1969. The average rate of inflation in the U.S. is 4.1% on average for the past 30 years; at this rate the dollar loses half its purchasing power every 17 years. For detailed inflation data, see www.bls.gov. The data there includes an inflation chart sine 1913. Since the mid 1970s, the slope of the chart is up on an angle of approximately 45 degrees.
How does inflation lead to unemployment?
The idea comes from Economic cycle. See the Related Link below. The main idea is that while the economy is booming the unemployment is shrinking. People are needed to work/produce and employers are willing to pay more and more to get the most qualified workers, thus driving the wages up. They have nowhere to take the money from but to increase the price of their product/service. Thus driving the price level up (inflation). After reaching the highest point - the economy goes into crisis/recession. The main problem is overproduction. Production shrinks. Producers cut costs: decrease output, layoff people. In this period the unemployment begins to grow.
What is the relationship between inflation and money supply?
Money itself, as it is used in today, is an idea only. When money isn't backed by something solid it is less valuable than previously and causes things to cost more because of the lack of solidity of the money as it is only an idea and everyone is trying to capture the idea and make it concrete. Perhaps also because if there is more money in circulation in theory people have more money to spend, therefore they can afford to spend more.
What do monetarists such as Milton Friedman believe the fed should do each year?
Monetarists like Milton Friedman believe the Federal Reserve should focus on controlling the money supply to manage inflation and stabilize the economy. They advocate for a steady, predictable increase in the money supply, ideally aligned with the long-term growth of the economy, rather than using discretionary monetary policy tools. This approach is based on the idea that inflation is primarily a monetary phenomenon and that excessive growth in the money supply leads to inflationary pressures.
What is the main idea of monetarianism?
Monetarism is a school of economic thought that emphasizes the role of government control over the money supply to achieve economic stability and growth. It argues that fluctuations in the money supply are the primary cause of economic fluctuations, and advocates for central bank intervention to control inflation and stabilize the economy.
Is running a taxi business a good idea in this economy?
No, running a new taxi business is not a good idea in this economy. There is too much competition out there, and it would cost too much money to start up, then what you would profit.
Do most economists believe that money neutrality has a significant impact on the economy?
Most economists believe that money neutrality, the idea that changes in the money supply do not affect real variables like output and employment in the long run, has a significant impact on the economy.
Which is the worse macroeconomic problem for t economy higher inflation or higher unemployment?
Inflation is worse than recession. Recessions end. Inflation is the most powerful force in the world and it keeps on keeping on. Inflation in the U.S., for example, has decreased the value of the dollar 84% since the beginning of 1969. The average rate of inflation in the U.S. is 4.1% on average for the past 30 years; at this rate the dollar loses half its purchasing power every 17 years. For detailed inflation data, see www.bls.gov. The data there includes an inflation chart sine 1913. Since the mid 1970s, the slope of the chart is up on an angle of approximately 45 degrees.
How does inflation lead to unemployment?
The idea comes from Economic cycle. See the Related Link below. The main idea is that while the economy is booming the unemployment is shrinking. People are needed to work/produce and employers are willing to pay more and more to get the most qualified workers, thus driving the wages up. They have nowhere to take the money from but to increase the price of their product/service. Thus driving the price level up (inflation). After reaching the highest point - the economy goes into crisis/recession. The main problem is overproduction. Production shrinks. Producers cut costs: decrease output, layoff people. In this period the unemployment begins to grow.
What happen to investments from FleetBoston?
I dunno :D Umm...I have no idea what you are even talking about. Investing money? IN THIS ECONOMY? RIGHT!! Your CRAZY
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 is tourism industry important?
Because the whole idea of the industry is to bring money into the economy. For example, a historical place, such as a castle could brig in visitors from all over the world and they will have to pay to go in. So the money will go towards your local economy.
How much was 200 pounds worth in today's money in 1962?
To determine how much 200 pounds from 1962 would be worth in today's money, we need to account for inflation. Using historical inflation rates, £200 in 1962 is approximately equivalent to around £4,000 to £4,500 today, depending on the specific inflation calculations used. This can vary based on the method and index applied, but it gives a general idea of the purchasing power of that amount over the years.
Why is it a bad idea tp simply hide money is a safe place as a way to save?
Over a period of time, the cost of goods goes up (inflation) The money that you hid will not buy as much, so it is worth less. Money invested can grow over time. you can also have hidden money stolen or lost.
