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Governments may want prices to increase to stimulate economic growth, particularly during periods of low inflation or recession. Higher prices can encourage consumer spending and investment, as people are more likely to make purchases before costs rise further. Additionally, moderate inflation can help reduce the real burden of debt, making it easier for borrowers to repay loans. Ultimately, controlled price increases can contribute to a healthier economy by promoting spending and investment.
What else can I help you with?
Who would raise prices on exports to increase profits and why?
That would depend on the elasticity of demand. If the elasticity were sufficiently high, a firm would want to increase export prices to increase their total revenue; if else, they would want to lower or maintain their price.
Which of these does not describe a weak economy?
The government will assume a contractionary fiscal policy position.
Why can the law of demand apply only in a free market economy?
demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.
What was not a consequence of the plague anti-semitism decline in trade increase in food prices increase in the price of labor?
Increase in food prices
How did farmers survive when prices dropped?
In present days American farmers can recieve subsidues from the Federal Government to make less produce in an effort to increase prices. But in former days and in some other countries farmers suffer when prices drop.
Who would raise prices on exports to increase profits and why?
That would depend on the elasticity of demand. If the elasticity were sufficiently high, a firm would want to increase export prices to increase their total revenue; if else, they would want to lower or maintain their price.
Why does the government allow gas prices to rise even as the oil companies profits increase They are raping us and your government does not care Why?
Higher gas prices, more tax money.
Which of these does not describe a weak economy?
The government will assume a contractionary fiscal policy position.
What size of government does the Democratic Party want?
They want to increase it for working
What did business leaders want the government to do after the war?
Allow them to raise prices
Why a government may want to increase the population of a country?
The reason for a government to want an increase in population is because of greed. The extra person would add funding in one way or another.
Why can the law of demand apply only in a free market economy?
demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.
Why you need government intervention in perfect competition market?
Becouse not everyone can afford due to increase of prices every now and then
What the government should do when they want to make up the budget of deficit?
the government should increase personal income tax and publish government bond^^
Do prices increase during a depression?
it will increase
Why was the South against the idea of the government paying state debts?
They did not want taxes to increase.
Why was the South against idea of the government paying state debts?
They did not want taxes to increase.
