answersLogoWhite

0

During an inflationary period, the government should consider taking actions such as increasing interest rates, reducing government spending, and implementing policies to control the money supply. These measures can help to curb inflation and stabilize the economy.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Related Questions

During an inflationary period what is one way the U.S. government might use its fiscal policy to slow down the economy?

During an inflationary period, the U.S. government might use contractionary fiscal policy to slow down the economy by reducing government spending or increasing taxes. By cutting spending on public programs or raising taxes, disposable income for consumers decreases, leading to lower demand for goods and services. This reduction in demand can help alleviate inflationary pressures, stabilizing prices in the economy.


Do People with fixed incomes fare best in an inflationary period?

No


The use of LIFO during a long inflationary period can result in?

Significant cash flow advantages over FIFO


What is wrong with German youth in the 1960's?

They protested the actions of their parents during the Nazi period and were struck down by the police and conservative government.


During the period from 1875 to 1900 the greatest challenges to the US Government were presented by?

The changes accompanying a shift from an agricultural economy to an industrial one.


Define interest rates?

Interest rates are the rate at which interest is paid by a borrower for the use of the money 'lent' from the lender. That underlying interest rates from which the overall rate is determined, is set by the central bank of that country and is a proxy for the overall state of the economy. During high growth or inflationary periods interest rates are so as to slow down the economy to a sustainable non inflationary rate, or to 'bring down' the rate of inflation. During weaker times (as in the age of austerity we are currently in) it is set at a much lower rate to encourage people to go out, borrow money and invest in ventures. The rate is expressed as a percentage of the principle for a period of one year.


A period of change in an economy is?

transition.


Which terms means the amount by which government revenues are more than government spending during a specific period?

It is nothing but a surplus state of economy in the country which is being the desired state in the minds of classical economists.


What effect will disinflation following a highly inflationary period will have on the reported income of the firm?

A great change in ratios will occur as expensive inventory is charged against softening prices.


What economic period does it growth and decline?

During an expansionary period/phase, an economy grows. In a contractionary period/phase, an economy declines/retracts until it begins to grow again.


How does inflation affect America after the World War 1?

After World War I, America experienced significant inflation due to a combination of factors, including the transition from a wartime to a peacetime economy, increased consumer demand, and supply chain disruptions. The resulting inflation eroded purchasing power, leading to strikes and social unrest as workers sought higher wages to keep up with rising prices. This economic instability contributed to the 1920-21 recession, prompting the government to implement measures aimed at stabilizing the economy. Ultimately, the inflationary period highlighted the challenges of post-war economic adjustment in the United States.


Define recession in the economy?

Recession means the period of reduction in trade and commerce in the economy.