Economic Indicators and the Business Cycle
If the central bank aims to reduce inflation that is primarily caused by excess demand, which policy combination would be most effective in achieving this goal without severely impacting long-term economic growth?
How might moderate inflation affect a nation's unemployment rate in the short run according to the Phillips curve?
Which group may face erosion of the purchasing power of their savings due to unanticipated inflation?
What is the term used to describe a general increase in prices and fall in the purchasing value of money?
Over the long term, how does successful inflation targeting primarily affect an economy's real output?
If a central bank successfully implements inflation targeting, what is the most likely short-term effect on price stability?
What could be a potential short-term side effect for an economy immediately after adopting a strict inflation targeting policy?
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Expansionary fiscal policy would likely involve which one of these actions during a recession?
If persistent inflation affects a nation’s currency value, what is a likely outcome in terms of international trade?
Based on historical trends, how would a sudden unexpected sharp depreciation (local currency devaluation) affect nations?