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The part of the government primarily responsible for trying to prevent inflation is the central bank, often referred to as the Federal Reserve in the United States. The central bank uses monetary policy tools, such as adjusting interest rates and controlling the money supply, to influence economic activity and manage inflation. Additionally, fiscal policy, enacted by the government through spending and taxation, can also play a role in controlling inflationary pressures. Together, these institutions strive to maintain price stability and support economic growth.

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The roman government trying to cope with falling incomes and rising prices minted more coins this led merchants to raise prices which led to an economic condition called what?

Inflation


What are the two parts of fiscal policy?

Fiscal policy is a way in which the government can attempt to influence economic activity through spending and taxation. By either increasing spending or decreasing taxes, the government is often attempting to stimulate economic activity during times of recession. By decreasing spending or increasing taxes, the government is trying to slow down economic activity during times of inflation.


How could monetary policy could conflict with fiscal policy in trying to resolve stagflation?

They could conflict because of differing ideas on what will resolve stagflation. The fiscal policy may be spending money to meet the programs for the government. The monetary policy may be trying to decrease business involved in the fiscal policy. Actions meant to lower inflation may worsen the stagflation. It is sometimes difficult to reverse stagflation once it has begun.


How do you use the word inflation in a sentence?

(The word inflation is a noun meaning filling with air, or overall cost increases.)The level of inflation in the American economy has remained essentially the same over the past several years.The proper inflation is required in basketballs and volleyballs.


Is real GDP the same as GDP?

The main difference is that Real GDP accounts for inflation and is calculated using Nominal GDP. It is useful when trying to compare GDPs froms different times.

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The roman government trying to cope with falling incomes and rising prices minted more coins this led merchants to raise prices which led to an economic condition called what?

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