Question

Consider a hypothetical economy: Inflation is low & stable. Unemployment is low & falling. GDP growth...

  1. Consider a hypothetical economy: Inflation is low & stable. Unemployment is low & falling. GDP growth is strong & positive. The majority of people in this country are living in dire poverty, their living standards have been falling, many are out of work, with no hope in sight. Is this possible? If so, explain how. What could be going on in this country?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It is a case of command economy where the ruler is the king and people have no freedom.In this case , due to international trade with other nations and appropriate use of resources , supply is sufficient and in this kind of country , due to less population demand is also sufficient according to supply.Therefore, inflation is under the control and gross domestic product rises and people get employment. But at the same time in nation, king want resources under its control and people have limited income to survive.Therefore, living standard of people are poor and provoke to live in poverty and in this kind of country worst phase of poverty and unemployment can be seen for the people but with positive balance of payment.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
. The term stagflation refers to an economy: a.with hyperinflation, but low unemployment b.with low inflation,...
. The term stagflation refers to an economy: a.with hyperinflation, but low unemployment b.with low inflation, but expanding capital stock. c. that is experiencing stagnated technology growth, but no inflation . d. that is not growing, but has inflation. Stagflation is the result of: a. a decrease in long-run aggregate supply. b. an increase in short-run aggegate supply. c. an increase in long-run aggregate supply. d. a decrease in short-run aggregate supply. Which of the following events could cause stagflation?...
Consider the following table of long run trend growth rates of nominal GDP and population, along...
Consider the following table of long run trend growth rates of nominal GDP and population, along with the long run average inflation rate, for four fictional countries: Country________g(NGDP)____Inflation_Rate______g(POPULATION)__ Westeros                   18%                    10%                          5% Pentos                          7%                     1%                           2% Lys                               9%                     5%                           4% Qarth                         15%                     6%                           3% (a) Suppose these countries currently have identical living standards. Assuming the trends shown above continue indefinitely, which country will eventually have the highest living standards, and which will have the lowest? (b) How many years will...
What does our text conclude about falling prices in the housing market? Falling prices is only...
What does our text conclude about falling prices in the housing market? Falling prices is only a good thing if it happens due to a decrease in the demand for houses. Falling prices in the housing market means that people expect the future price of houses to be lower; this negatively impacts the current demand for houses if prices fall consistently. All of the listed choices are correct. When prices rise and then fall in cycles, it will not negatively...
Consider the following data of the country ABC (ABC) economy in 2019: million ($) Private consumption...
Consider the following data of the country ABC (ABC) economy in 2019: million ($) Private consumption expenditure $900,000 Gross domestic Investment $240,000 Government expenditure $30,000 Government welfare payment $20,000 Total exports $1,500,000 Total imports of goods $1,400,000 Total imports of services $160,000 ----------------------------------------------------------------------------------------------- Total population 8,000,000 Total working age population 7,000,000 Total labor force 3,650,000 Total number of unemployed person 250,000 Total underemployed person 180,000 a) Calculate A BC economy’s nominal GDP in 2019. (1 mark) b) If GDP deflator...
answer the following questions Q21.When the economy experiences an expansion, it is most likely the case...
answer the following questions Q21.When the economy experiences an expansion, it is most likely the case that------------------------------- GDP is increasing, unemployment is increasing, and inflation is decreasing. GDP is increasing, unemployment is decreasing, and inflation is increasing. GDP is decreasing, unemployment is decreasing, and inflation is increasing. GDP is decreasing, unemployment is decreasing, and inflation is decreasing. Q22. GDP is an important economic measurement because it provides valuable data on unemployment rates measures the combined total of all intermediate and...
Does minimum wage cause unemployment? The minimum wage has evoked controversy since its passage as part...
Does minimum wage cause unemployment? The minimum wage has evoked controversy since its passage as part of the Fair Labor Standards Act of 1938. Proponents of the minimum wage argue that a higher minimum wage will help create jobs, grow the economy, help the war on poverty, and will reduce wage inequality. Its critics stress that the minimum wage causes unemployment, hurts the economy, and actually harms the low-income people that were supposed to be helped. These are clearly very...
1. Which of the following statements are correct? a. Economic growth and unemployment are areas on...
1. Which of the following statements are correct? a. Economic growth and unemployment are areas on which macroeconomics focus in contrast with the aggregate output level and employment level on which microeconomics focus. b. An increase in nominal GDP can be the result of an increase in the quantity produced of goods and services and/or an increase in the prices of goods and services produced. c. Stabilisation policies refer to fiscal policy and monetary policy. d. An increase of 20%...
1. ​(Please refer to the attached exhibits and sample article​ ). Which paragraph would be best...
1. ​(Please refer to the attached exhibits and sample article​ ). Which paragraph would be best for a target audience of people familiar with economics in general and the workings of the Fed in​ particular? 2. (Please refer to the attached exhibits and sample article​ ). Which paragraph would be best for a target audience of people unfamiliar with​ economics? 3. ​(Please refer to the attached exhibits and sample article​ ). Which exhibits are the most ​accurate? 4. If the...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT