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Q: The relationship between the price level and the money supply can be seen in periods of hyper inflation.?
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What has the author M Thomas Paul written?

M. Thomas Paul has written: 'A re-examination of the long run relationship between money supply and inflation in India' -- subject(s): Inflation (Finance), Money supply


What is the relationship and proportioned powers that exists between the buyer and the supply?

The monetarist explanation of inflation operates through the Quantity Theory of Money, MV = PT where M is Money Supply, V is Velocity of Circulation, P is Price level and T is Transactions or Output. As monetarists assume that V and T are determined, by real variables, there is a direct relationship between the growth of the money supply and inflation. ChaCha again!


The supply curve shows the relationship between what?

the supply curve shows the relationship between


What is the relationship between money and inflation?

There is nearly a perfect, 1:1 relationship between inflation and the money supply. Generally, printing more money is the source of inflation.


In periods of inflation the federal reserve should raise or lower the money?

Decreasing the money supply will help with inflation. With less money to spend, the demand for goods will decrease, bringing down their cost.


What is the relationship between interest rate and labor supply?

There is not a direct link but high interest rates are associated with expectations of high rates of inflation. High inflation may be associated with high wage rises and so lower employment rates. Low employment rates would suggest excess labour supply. So, from one end of that chain to the other: high interest rates are associated with high labour supply.


Why production is the answer to inflation?

Due to inflation the money value goes up ,people have more demand but they don't have supply so as it leads to high price of commodity, its the picture of inflation. So avoid this the better way to produce more to set a link between demand and supply.


What is the relationship between a power supply and a motherboard?

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The supply curve shows the relationship between?

Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.


What is meant by open inflation?

when prices go up freely due to the imbalance between demand and supply then that situation is called open inflation. this happens in a market economy .


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.


What do monetarians believe regarding inflation?

the main cause of inflation is the growth of money supply