9. Inflation targeting is a mandate exclusive to the Bangko Sentral ng Pilipinas. 10. Expansionary monetary policies result to an increase in real GDP.
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Write True if the answer is true. If the statement is False, provide an explanation as to why it is so.
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- Inflation can be a huge problem for countries, according to Joseph. Unfortunately, this is Joseph's first encounter with this concept. As a result, he seeks an explanation from you. Please educate Joseph about the concept of inflation.Explain the various measures to control inflation in an economyIn countries that have experienced hyperinflation, what role have large government budget deficits played in causing the very high inflation rates?
- 1990 - 2000 Real and Nominl Exchange Rates 140 0.60 Freal exchange rate (left) 120 Fnominal exchange rate (right) 0.50 100 0.40 80 0.30 60 0.20 40 0.10 20 0.00 How can you explain occurence of stable real exchange rate while the nominal exchange rate accelaretly depreciates between 1996 – 1999. 60-6661 s0-666T TO-6661 60-8661 10-8661 1998-05 : 60-L661 SO-L661 60-9661 SO-9661 TO-9661 60 561 1995-05 10-561 60-Þ661 1994-05 1O-461 60-E66 SO E661 10-E661 60-2661 1992-05 1992-01 1991-09 1991-05 10-1661 60-0661 so-061 10-0661“state three reasons why voters should care about high inflation and evaluate the merit of the arguments"Describe Inflation and how it is measured? Ascertain the Fiscal and Monetary policies that are generally adopted to curb inflation.
- How does the bangko sentral ng pilipinas controls and intervene in the inflation rate of the countryHigh inflation could be a problem to business firms. Explain THREE costs of inflation that could adversely affect business operations.directions:Use the given scenarios and the information you have learned about Fiscal and Monetary policy to complete the questions that follow Over the past 3 years, prices in Belarus have risen by 4%, as overall economic growth has increased by 5% while unemployment rates are 1.3%. Aram is finding that all goods, even necessities cost more at the stores. He is worried he may have to cut back on certain purchases. Congress and the President also notice this change in the economy and decide to take steps to correct it. They can use their 2 tools in the following ways: a. What will the federal government do to taxes? b. What will the federal government do to government spending? c. What impact will this have on consumer spending?
- Syria’s economic situation is getting worse. Price levels are increasing significantly as the flow of supplies remain low. How can the level of inflation be controlled in a situation like this? a. Increase aggregate demand by expansionary fiscal policy b. Increase money supply by decreasing bank reserve requirements c. Increase tax collections to limit aggregate demand d. Increase aggregate supply through importation of necessary goodsWhat is inflation? A) A decrease in the general price level B) An increase in the general price level C) A decrease in the money supply D) An increase in the money supplyWhat's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays its bills by printing more money. As the newly printed money works its way through the economy, it waters down the value of paper money already in circulation. Thus, it takes more money to buy things. Budget deficits are the major cause of inflation."
