Fiscal policy: the government manipulates its expenditure and taxes to reduce aggregate demand
Monetary policy: the government controls the amount of money supply in the economy to control inflation
Prices and income policy
Indexation: this is the linking of an economic variable such as wages and salaries to an index of inflation like the consumer price index. As the price index increases so does the variable simultaneously
Dana05 answered the question on August 15, 2019 at 13:55
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Highlight the external effects of inflation
(Solved)
Highlight the external effects of inflation
Date posted:
August 15, 2019
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Answers (1)
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Identify the internal effects of inflation
(Solved)
Identify the internal effects of inflation
Date posted:
August 15, 2019
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Answers (1)
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Highlight the methods used to correct the trade deficit in the J curve phenomenon
(Solved)
Highlight the methods used to correct the trade deficit in the J curve phenomenon
Date posted:
August 14, 2019
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Answers (1)
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Describe the J curve phenomenon
(Solved)
Describe the J curve phenomenon
Date posted:
August 14, 2019
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Answers (1)
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Differentiate between the flexible and fixed exchange rate regimes
(Solved)
Differentiate between the flexible and fixed exchange rate regimes
Date posted:
August 14, 2019
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Answers (1)
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Define the following terms: Exchange rate, Depreciation of the currency, Devaluation Appreciation, Terms of trade
(Solved)
Define the following terms:
- Exchange rate
- Depreciation of the currency
- Devaluation
- Appreciation
- Terms of trade
Date posted:
August 14, 2019
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Answers (1)
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Briefly explain the factors that cause a shift in the balance of payments curve
(Solved)
Briefly explain the factors that cause a shift in the balance of payments curve
Date posted:
August 14, 2019
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Answers (1)
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Why is the balance of payments curve positively sloped
(Solved)
Why is the balance of payments curve positively sloped
Date posted:
August 14, 2019
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Answers (1)
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What is the balance of payments made up of?
(Solved)
What is the balance of payments made up of?
Date posted:
August 14, 2019
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Answers (1)
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Give the definition of balance of payments
(Solved)
Give the definition of balance of payments
Date posted:
August 14, 2019
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Answers (1)
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Explain the factors that cause changes in the general equilibrium
(Solved)
Explain the factors that cause changes in the general equilibrium
Date posted:
August 14, 2019
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Answers (1)
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The following equation describe a certain economy
C = 400+ 0.75T
I = 200 - 100r
T = 70 + 0.2Y
G = 100
Money supply = 4000
Money demand...
(Solved)
The following equation describe a certain economy
C = 400+ 0.75T
I = 200 - 100r
T = 70 + 0.2Y
G = 100
Money supply = 4000
Money demand = 0.2Y – 10r
Find the values of Y, C, T, M and I
Date posted:
August 14, 2019
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Answers (1)
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What is the effect of decrease in income on the interest rate?
(Solved)
What is the effect of decrease in income on the interest rate?
Date posted:
August 14, 2019
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Answers (1)
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What is the effect of increase in income on the interest rate?
(Solved)
What is the effect of increase in income on the interest rate?
Date posted:
August 14, 2019
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Answers (1)
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What is the effect of decrease of money supply on the interest rate?
(Solved)
What is the effect of decrease of money supply on the interest rate?
Date posted:
August 14, 2019
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Answers (1)
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What is the effect of increase of money supply on the interest rate?
(Solved)
What is the effect of increase of money supply on the interest rate?
Date posted:
August 14, 2019
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Answers (1)
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Describe the classical theory of money supply
(Solved)
Describe the classical theory of money supply
Date posted:
August 14, 2019
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What is the velocity of money in an economy?
(Solved)
What is the velocity of money in an economy?
Date posted:
August 14, 2019
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Answers (1)
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Describe the modern quantity theory of money
(Solved)
Describe the modern quantity theory of money
Date posted:
August 14, 2019
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Answers (1)
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Describe how the liquidity trap occurs in an economy
(Solved)
Describe how the liquidity trap occurs in an economy
Date posted:
August 14, 2019
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Answers (1)