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However, we rarely discuss deflation in economics courses. The last time it happened in the US was during the Great Depression. Japan deal with deflation during the 1990s and off and on since then. China has come close, but central bank actions seem to have prevented it. And now the Euro Zone is facing possible deflation to which the European Central Bank has finally started to respond.
This week explore the causes of deflation, why it is considered to have negative consequences for an economy and how can it be prevented or stopped once started. Is there a linkage between inflation and deflation?
Do respond to all of these parts so as to provide a complete picture.
Imagine that you are part of the marketing management team at Home Plus, a regional discount big-box retailer who competes with Wal-Mart and Target. Home Plus currently focuses on offering a broad range of discount consumer goods, from small home fur..
q.the market for water in urban areas in australia is often dominated by one provider for example sydney water in the
According to the traditional view, in what direction is the slope of the production function, with capital per worker on the horizontal axis and output per worker on the vertical axis?
A total of $400,000 will be deposited one year from now for the gas pipeline maintenance in the area. They estimate that the deposit amount will increase by $80,000 per year for 6 years thereafter, determine the equivalent: (a) Present worth and (b) ..
Discuss how policy makers can incorporate the Domestic Climate Policy Framework into a widely accepted environmental policy. Provide examples.
Calculate the midpoint price elasticity of demand between $9 and $10. Is the demand in this range elastic or inelastic? Calculate the midpoint price elasticity of demand between $10 and $11. Is the demand in this range elastic or inelastic?
A local tailor has two types of customers, private customers and department stores. The market of private customers has a demand given by Qp = 2000–100P, and the market of department stores has a demand given by Qs = 4000 − 100P. Suppose that the tai..
Distinguish between the resources market and the product market in the circular flow model.
The problem below asks about the oil price increase from 1973-1980. We have also seen this in 2005 and 2010, although not as dramatic a price increase. During this energy crisis, Congress considered imposing an “excess profits” tax on oil companies. ..
Consider a contractual setting in which two players have agreed to invest (play I) in a cooperative enterprise. However, since their agreement, but before they have made the investments, some costs and revenues have changed. Circle the Pareto efficie..
Many people look back at their years at college and think one of two things; either they relish the fact that they were able to learn and grow from their experience and gain perspective on their future career, or they regret not allowing themselves t..
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with. What will the cumulative AD shift be ..
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