Some economists argue that policymakers can use monetary and fiscal policy to reduce the severity of economic fluctuations. What are some things policymakers can do when higher inflation becomes a concern?
Policymakers can cut government spending, raise taxes, and reduce the money supply when aggregate demand is excessive.
Economics
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Inflation results in
A) ease of planning for the future. B) ease of comparing prices over time. C) lower nominal interest rates. D) difficulty interpreting relative price movements.
Economics
What is potential GDP? What happens to unemployment when GDP is at its potential?
What will be an ideal response?
Economics