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What tool would the government most likely employ during a period of inflation to stabilize the economy?
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When do Discretionary fiscal policy will stabilize the economy most?
deflicts are incurred during recession and surpluses during inflaions.
What happend to the economy during stagflation?
In stagflation, you have high inflation, high unemployment, and low demand.
What happens to the open market operations during inflation?
sell more government bonds
How does government intervene to lower inflation or unemployment?
The government acts on inflation through The Federal Reserve. The Federal Reserve acts on inflation by targeting interest rates through the reserve requirement. When interest rates are high, people want to keep money in their bank accounts, and inflation decreases. When interest rates are low, people are more willing to spend their money and inflation increases. Once, the Federal Reserve actually pushed the United States into a recession once to battle especially high inflation. Ever since then, it has been very important for the Federal Reserve to keep inflation in check. The government, as demonstrated during the latest recession, enacts many different stimulus packages to help the economy recover and help unemployment come down from extremely high percentages.
What is moderate inflation?
Mild inflation is a slow rise in price level of no more than 5 percent per annum. It is associated with a low level of unemployment and is during the upswing phase of a trade cycle. Such creeping inflation has beneficial effects on an economy. It is a sign of a buoyant economy or an expanding economy, implying the generation of jobs, output and growth.
Which fiscal policy strategy would the federal government most likely use to stablize the economy?
The fiscal policy strategy that the Federal government would most likely use to stabilize the economy during times of inflation is to raise taxes. However, they could also decrease government spending.
What is an example of discretionary stabilization?
An example of discretionary stabilization is when the government implements fiscal policy measures, such as changing tax rates or increasing government spending, to counteract economic fluctuations and stabilize the economy. This can help to stimulate demand during economic downturns or curb inflation during periods of overheating.
What impact did Nicholas Biddle's policies have on the economy during his tenure as president of the Bank of the US?
they helped stabilize the economy
When do Discretionary fiscal policy will stabilize the economy most?
deflicts are incurred during recession and surpluses during inflaions.
What happend to the economy during stagflation?
In stagflation, you have high inflation, high unemployment, and low demand.
How did alexander hamilton finanicial plan affect the economy of the united states during the 1790s?
The newly created Bank of the United States helped stabilize the economy.
What happened to economy during stagflation?
Higher rates of inflation, decrease in business productivity, high unemployment
What was the inflation rate after the great depression?
We were on the gold standard then. No fiat currencyhttp://inflationdata.com/inflation/images/charts/Annual_Inflation/inflation_Cumulative.htmI don't think there was much inflation after the depression. During the depression there was deflation. The economy recovered slowly so there was no spike in inflation.
What elements of the American economy dropped during Reagan's first term in office?
Inflation was dropped during Reagan's first term in office.
What happens to the open market operations during inflation?
sell more government bonds
President ford inherited an economy highlighted by this during its bicentennial celebration?
President Ford inherited an economy highlighted by mad high inflation because of the Arab oil crisis during its bicentennial celebration.
How does government intervene to lower inflation or unemployment?
The government acts on inflation through The Federal Reserve. The Federal Reserve acts on inflation by targeting interest rates through the reserve requirement. When interest rates are high, people want to keep money in their bank accounts, and inflation decreases. When interest rates are low, people are more willing to spend their money and inflation increases. Once, the Federal Reserve actually pushed the United States into a recession once to battle especially high inflation. Ever since then, it has been very important for the Federal Reserve to keep inflation in check. The government, as demonstrated during the latest recession, enacts many different stimulus packages to help the economy recover and help unemployment come down from extremely high percentages.
