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Discuss the various ways inflation can hinder economic activity. What are some strategies you might use in your life to deal with rising inflation? How might these strategies change if we experienced deflation?

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Romarie Khazandra Marijuan
Romarie Khazandra MarijuanLv10
28 Sep 2019

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Related questions

However, we rarely discuss deflation in economics courses. The last time it happened in the US was during the Great Depression. Japan deal with deflation during the 1990s and off and on since then. China has come close, but central bank actions seem to have prevented it. And now the Euro Zone is facing possible deflation to which the European Central Bank has finally started to respond.

This week explore the causes of deflation, why it is considered to have negative consequences for an economy and how can it be prevented or stopped once started. Is there a linkage between inflation and deflation?

Do respond to all of these parts so as to provide a complete picture.

1. What are the five factors that influence comparative advantage?

2. How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation?

3. Some economists believe that creeping inflation cannot be accepted because a gradual increase in prices leads to an ever-rising rate of inflation. Other economists argue that in order to achieve economic growth, some moderate price increases are necessary. Contrast and evaluate these two points of view.

4. Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. Explain:

How do government policies and/or regulations factor into changes in economic activity on both a domestic and global scale?

Give a specific example of a policy or regulation that has helped economic activity.

Give a specific example of a policy or regulation that has hindered economic activity.

If you were an economist who was tasked with evaluating this policy or regulation, what are some ideas you would suggest for changing it in a way that would achieve the same goal but not hinder economic activity?

Finally, state whether or not you enjoy these types of evaluations and if you would consider these types of responsibilities in a future career.

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