subject
English, 06.09.2019 16:10 asims13

Is it possible to decrease inflation without causing a recession and its concomitant increase in unemployment? the orthodox answer is "no." whether they support the "inertia" theory of inflation (that today's inflation rate is caused by yesterday's inflation, the state of the economic cycle, and external influences such as import prices) or the "rational expectations" theory (that inflation is caused by workers' and employers' expectations, coupled with a lack of credible monetary and fiscal policies), most economists agree that tight monetary and fiscal policies, which cause recessions, are necessary to decelerate inflation. they point out that in the 1980's, many european countries and the united states conquered high (by these countries' standards) inflation, but only by applying tight monetary and fiscal policies that sharply increased unemployment. nevertheless, some governments' policymakers insist that direct controls on wages and prices, without tight monetary and fiscal policies, can succeed in decreasing inflation. unfortunately, because this approach fails to deal with the underlying causes of inflation, wage and price controls eventually collapse, the hitherto-repressed inflation resurfaces, and in the meantime, though the policymakers succeed in avoiding a recession, a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth.
1. the passage suggests that the high inflation in the united states and many european countries in the 1980’s differed from inflation elsewhere in which of the following ways?
(a) it fit the rational expectations theory of inflation but not the inertia theory of inflation.
(b) it was possible to control without causing a recession.
(c) it was easier to control in those countries by applying tight monetary and fiscal policies than it would have been elsewhere.
(d) it was not caused by workers’ and employers’ expectations.
(e) it would not necessarily be considered high elsewhere.

ansver
Answers: 3

Other questions on the subject: English

image
English, 21.06.2019 15:00, gebradshaw2005
Is not only unethical, it is also illegal. a. ethnocentrism b. plagiarism c. interpersonal conflict d. criticism
Answers: 2
image
English, 21.06.2019 18:30, smilebehappy468
3. what differences do you see in the statistics between the two cities? what factors might account for the differences you see?
Answers: 3
image
English, 21.06.2019 23:40, cherokeesiouxw72
What is a career pathway for human services?
Answers: 1
image
English, 22.06.2019 03:00, adiboo2004
Read the excerpt from "save the redwoods."another, one of the finest in the grove, more than three hundred feet high, was skinned alive to a height of one hundred and sixteen feet from the ground and the bark sent to london to show how fine and big that calaveras tree was—as sensible a scheme as skinning our great men would be to prove their greatness. which  best  describes how the excerpt appeals to readers’ emotions? the excerpt provides facts about the tree, which impresses readers’ scientific minds. the excerpt describes how the tree traveled to london, which excites the readers’ sense of adventure. the excerpt compares the tree to a person, which makes readers feel sympathetic toward the tree. the excerpt explains how to skin a tree, which makes readers feel awed at the height of the tree.
Answers: 1
You know the right answer?
Is it possible to decrease inflation without causing a recession and its concomitant increase in une...

Questions in other subjects:

Konu
Mathematics, 23.06.2019 06:30
Konu
Mathematics, 23.06.2019 06:30