Compare and contrast inflation and deflation

Reference no: EM13757118

Q-1

What is the economy's current stage in the business cycle? Support your answer with an article written within the last week from the popular press or blog. In light of the text readings, evaluate the article and the source of the article. Based on the information, determine where the economy fits in the business cycle.

Q-2

Compare and contrast inflation and deflation. What are some of the damaging effects that each has on an economy? What would be monetary policy prescription to reduce or eliminate each? How would deflation affect your business or a business you are familiar with?

Q-3

Why is GDP important? List and explain the four spending components (C, G, I, X) of Gross Domestic Product. What are some factors that impact each spending component?

Q-4

Explain discretionary fiscal policy. How are the tools of fiscal policy used to combat a recession? What about inflation?

Reference no: EM13757118

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